Does your credit need some help? You can repair your credit, but you have to do it right. You may be able to get a credit card or a loan with less than stellar credit, but the interest rate will also be less than stellar. Follow these tips to get better credit!
If you are going to pay off and close some of your credit accounts, then follow the rule of "last one in, first one out." That means that you should close your newest accounts and keep your older accounts, as a longer credit history looks better on your credit report.
One of the best ways to improve your credit score is to pay your bills on time. This is very easy to do and you really should be doing this anyway. Your payment history makes up 35% of your total score, so make sure that you never miss a payment.
To keep track of your credit history, take advantage of the annual free credit report offered by the three major credit bureaus. Each of these companies is required by law to provide everyone with one free credit report a year. Rotate between these companies so that you can get three free reports each year.
If you can afford to pay your credit card balance in full every month, you should. It shows the credit card company you are responsible, and could lead to credit limit increases later on. Even if you can't pay off the full balance, try to pay as much as you can.
Consolidate many of your highest interest rate credit cards into one large balance with a lower interest rate. One possibility for doing this is to check a peer to peer lending site. These sites offer interest rates that bypass typical charges that you would incur with traditional banking, and allow other people just like you to fund your loan at a lower rate than a bank typically would.
If you need to dispute a claim with your credit bureau, send them a letter. You can find sample letters online, look for the one that best suits you. Remember the option to file a dispute may be online, but it may not be user friendly, so sending a letter might be your best option.
If you are serious about getting your finances in order, start by making a budget. You need to know exactly how much money is coming into your household in order to balance that with all of your expenses. If you have a budget, you will avoid overspending and getting into debt.
When trying to repair your credit, avoid falling for scams that tell you that you can easily create a new credit file. Do not go through with this. It is called credit fraud and is highly illegal. It can cause you to get arrested or face other harsh legal repercussions.
Credit repair is possible, just be sure you follow these helpful tips to get the most out of your efforts. You don't have to pay higher interest rates. Given time, you can have stellar credit and obtain great rates on your loans and credit cards.
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