Great Ways to Fix Bad Credit
In today’s economy and credit driven society, bad credit is becoming the norm rather than the exception. And bad credit may be keeping you from securing loans for a new home or vehicle, or the resulting high interest rates may be putting heavy stress on your finances. The good news is there are hassle-free ways to repair your credit and improve your rating.
Before you do anything else, get a copy of your credit report to discover what things are weighing negatively on your credit. Contact all of the individual creditors listed and find out if you can put together a workable repayment plan that you can afford. As you pay off the debts, get a letter in writing stating that payment has been fulfilled. If you note inaccuracies on your report, dispute them with the creditors reporting them.
If you have credit card debts, contact your credit card companies and ask for a reduction in the interest rates. Use the reduction of interest to pay down the debt faster. For large debts, you might contact a credit counseling service. They can speak to your creditors and often get you reduced rates and extended payments plans as well.
It's important to create a budget for yourself by examining your monthly bills to ensure that you're not spending more than you are taking in. Also, if you have too many credit cards, cut them up, or hide them away so that you are not tempted to rack up more debt.
Finally, apply for a bank sponsored debit or prepaid credit card. As you use this for purchases and make regular payments, you'll slowly rebuild bad credit into good credit.