You are not alone when it comes to credit problems. Some people have much worse credit than others. Find out how you can fix your credit with these helpful tips.
Check your credit score by getting a copy of your credit report from each of the three main credit bureaus several times annually. Some websites provide this service free of charge when you sign up for a trial membership. Once you are aware of exactly how much you owe, you will be able to take the steps to improve your credit.
Call your creditor and find out which portion of your bill needs to be paid now and what portion can be paid in installments. If you know what you must pay now, you will be able to avoid paying penalties and interest fees. This will save you a great deal of money. By knowing which accounts you can delay paying without penalty, or pay via installments, you can focus on the accounts that do not have any payment options.
The first step to fixing your credit score is to make note of any negative information that is listed in your report. If any of the information is wrong, take decisive action to have it deleted from your report. Write out an explanation for anything you believe to be your fault that you can submit to anyone who views your credit report in the future.
When dealing with a collection agency, it’s important to know what your rights are. Debt collectors are not permitted to harass you, and you are not obliged to take their phone calls if they go this route. You do not have to worry about being sent to prison for not paying a particular bill. Laws vary by state, so make sure to research what actions are illegal for collection agencies in your area. If you want to avoid talking to the debt collectors on the phone, suggest that they begin corresponding with you via email.
You should always keep your balance on credit cards below 30 percent. Not only does this make it easier for you to make payments on time, it will also improve your credit.
If you find your bills have been turned over to a collection agency, the first thing you need to consider is how to set up a repayment plan. Given the opportunity, many collection agencies welcome the chance to work out a plan with you. If you avoid talking to them, your debt is just going to grow, and collectors will lose their willingness to negotiate with you. There are many things that collection agencies can do for you, one of them being lowering the amount of debt that you owe. The more you ignore the problem, the more late charges you will receive. Anything to make this process stop will help you out tremendously.
Trying these tips will get you back on track to rebuilding your bad credit. Stick to the tips in this article and start fixing your credit yourself.