Fix Bad Credit
Want to fix bad credit? There are many options out there that you may not be aware of. Before you consider bankruptcy lets look at a few options.
No one plans to have bad credit. Usually a lack of planning or a sudden life change is the cause. Still, fixing bad credit mistakes can be difficult. One great way to fix bad credit is to focus on the highest expenses and debts, paying only the minimum balances on the other credit cards and putting more money toward the highest then working your way down. This causes a snowball effect; it really does work and will allow you to see the progress as it takes place. Why does this work? The amount of debt you owe makes up about 30% of your credit score. By paying your debt down below 30% or less of your limit you can drastically raise your credit score.
Be sure to always pay over the minimum amount due. This can be difficult at times, especially if you have a lot of debt. You might even alternate months. For example, one month pay higher than the minimum due on one card while trading off the next month and putting this extra money on another card. Only do this if all the amounts you owe are close in number.
You might select to work with a credit consolidation company. This might seem different that bankruptcy, but it can do similar damage to your credit. They will tell you to stop paying your credit card bills so that they can negotiate your debt down. You then make payments to the debt consolidation company who make payments on your behalf. This may make paying easier, but all the accounts you closed out will show "settled for lesser amount" and will damage your credit score. Often, even after your payments are reduced you still pay the same amount because you are now also paying the consolidation company.
Be careful when choosing a credit consolidation company. There have been a number of companies to take client's money and keep it. But, you can do much of the same work for free yourself. You can work with creditors yourself to come to an agreement on payment. This will help you pay off your bills and rebuild your credit.
You might also try to remove negative items off your credit report. By writing to the credit bureaus and stating your case you can have negative items removed. This is important because even if you are paying all your bills on time you still have negative items holding your score down. There are also a number of great credit repair companies out there that can help you do this.
The laws regulating these companies are different in every state, so be sure to find out the laws in your area. No company can promise you to remove any item or promise to get you a certain credit score. The best companies not only help you to remove items, they coach you on how to get important new, positive items to rebuild your credit. It is a great way to fix bad credit and will eliminate any further problems you may have otherwise experienced as a result of having bad credit.
No one plans to have bad credit. Usually a lack of planning or a sudden life change is the cause. Still, fixing bad credit mistakes can be difficult. One great way to fix bad credit is to focus on the highest expenses and debts, paying only the minimum balances on the other credit cards and putting more money toward the highest then working your way down. This causes a snowball effect; it really does work and will allow you to see the progress as it takes place. Why does this work? The amount of debt you owe makes up about 30% of your credit score. By paying your debt down below 30% or less of your limit you can drastically raise your credit score.
Be sure to always pay over the minimum amount due. This can be difficult at times, especially if you have a lot of debt. You might even alternate months. For example, one month pay higher than the minimum due on one card while trading off the next month and putting this extra money on another card. Only do this if all the amounts you owe are close in number.
You might select to work with a credit consolidation company. This might seem different that bankruptcy, but it can do similar damage to your credit. They will tell you to stop paying your credit card bills so that they can negotiate your debt down. You then make payments to the debt consolidation company who make payments on your behalf. This may make paying easier, but all the accounts you closed out will show "settled for lesser amount" and will damage your credit score. Often, even after your payments are reduced you still pay the same amount because you are now also paying the consolidation company.
Be careful when choosing a credit consolidation company. There have been a number of companies to take client's money and keep it. But, you can do much of the same work for free yourself. You can work with creditors yourself to come to an agreement on payment. This will help you pay off your bills and rebuild your credit.
You might also try to remove negative items off your credit report. By writing to the credit bureaus and stating your case you can have negative items removed. This is important because even if you are paying all your bills on time you still have negative items holding your score down. There are also a number of great credit repair companies out there that can help you do this.
The laws regulating these companies are different in every state, so be sure to find out the laws in your area. No company can promise you to remove any item or promise to get you a certain credit score. The best companies not only help you to remove items, they coach you on how to get important new, positive items to rebuild your credit. It is a great way to fix bad credit and will eliminate any further problems you may have otherwise experienced as a result of having bad credit.
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