It is quite common nowadays to need credit repair. Whether you need a small boost to rent an apartment, or a huge boost to qualify for an awesome mortgage rate, you can get there by making use of this practical advice.
The first thing you want to do is look at your credit report and learn your credit score. You can obtain credit reports for free online. Once you know what your credit report looks like, you can begin the challenge of fixing it.
Call your creditor and find out which portion of your bill needs to be paid now and what portion can be paid in installments. This will help you prioritize your bills and avoid paying costly interest fees. Focus on paying off inflexible accounts first, followed by those that allow late payments.
Finding negative aspects to your credit report can actually be used to your advantage. The real value of reviewing your credit report lies in the fact that mistaken charges and erroneous information can creep into it all too easily. In the event that you find an error on your credit report, you must immediately report the error to the reporting agency to get it fixed.
You should always be informed about your rights and your state laws concerning collection agencies and their practices. Debtors cannot legally threaten you, and non-payment will not result in you going to prison. There are different laws from state to state, but debt collectors can not harass you over the phone because this is illegal pretty much everywhere. You should become familiar with your legal rights so you do not fall victim to shady collection-agency practices.
You want to keep your credit card debt at or below 30% of your total available credit. Low balances make you look like less of a credit risk and ensures that you will be able to make the payments in a timely manner.
You absolutely need a coordinated repayment plan if your bills have gone unpaid long enough to get collection agencies involved. Many times, the collector will be happy to work with you. You will not be able to pay off your debt if you try avoiding collectors. You should tell them that you are definitely having a difficult time paying your debt but that you are willing to work something out with them. This may be able to get them to lower your bill by up to half. Cooperate with creditors and attempt to set up a manageable payment plan. Make an honest effort with credit companies to negotiate a payment plan. By doing so, you reduce the likelihood of incurring further late fees.
These tips will help you manage your credit. They will get you on the road to repair credit.