In this economy, you’re not the only person who has had a difficult time keeping your credit score high. That can be little consolation when you find it harder to get financing for life’s necessities. The good news is that you can repair your credit; here are a few tips to get you started.
Paying your premiums in full instead of on a monthly schedule can help you save big money on your auto insurance policy. If you can pay a larger portion of a 6-month or 12-month policy, you should definitely go ahead and get the premium paid off. This will allow you to save some money over the life of your plan.
When attempting to access new credit, be aware of regulations involving denials. If you have a negative report on your file and a new creditor uses this information as a reason to deny your approval, they have an obligation to inform you that this was the deciding factor in the denial. This allows you to target your repair efforts.
If you have negative items on your credit report, you have the right to challenge them at any time. Even if you don’t think an item is disputable, there is a chance you can have it removed if the credit bureau doesn’t investigate your challenge in a timely manner. For items that are two years old or more, the credit bureau may have trouble finding information to verify its accuracy, in which case they will have to delete it from your report.
If you paid off an account, do not try to have it removed. Paid off accounts do have a positive effect on your FICO score, especially as they age. Every item on your report that shows that you have at some point made payments is a positive item.
When in the process of repairing your credit, you will have to speak with creditors or collection agencies. Make sure that you speak to them in a courteous and polite tone. Avoid aggression or it could backfire for you. Threats can also lead to legal action on their part, so just be polite.
An important tip to consider when working to repair your credit, is to try out some of the online jobs that pay small amounts for quick and easy jobs. This is important because when you make small amounts of money at a time, you will learn to appreciate the money that you spend and you will keep a much closer eye on it.
Work closely with all of your creditors if you are aiming towards repairing your credit. This will keep you from increasing the amount of debt that you have. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
A low credit score can run your life in a number of ways, so having a bad credit score can make you feel the squeeze of a bad economy even more than other people. Following these tips will help you to breathe easier, as you find your score starts to improve over time.