If you're tired of credit rejections or higher interest rates on your credit accounts, perhaps now's the time to fix your credit score. Credit scores affect several areas in your life. Your score determines if you can get new credit, the interest rate on new credit and even the premiums paid to your insurance providers. Fixing credit doesn't involve hiring a credit repair company. Learn how credit works, and explore techniques to improve bad credit habits.
Bad Marks on Credit Report
Bad or negative remarks on your credit report will take points off your overall score. Fix credit report mistakes by contacting creditors and asking them to update your file with accurate information. Detect credit report errors by getting your free reports from Annual Credit Report at least once a year. Check each creditor entry for accuracy. Look at the account balances and the account status. Creditors reporting higher balances in error or reporting your account as delinquent in error can harm your score.
Pay Off Balances
Paying off credit card balances and other installment loans can quickly improve your bad credit rating. The debt you owe makes up 30 percent of your credit score. Stop living off credit cards and establish a plan to effectively get rid of balances. Pay more toward your debt each month, and use credit as a last resort and only if you can pay off the balance within a few weeks.
Fix Payment History
Don't let poor payment habits destroy your credit rating. Repairing credit yourself includes paying your creditors on time every month. Regardless of past credit habits, start fresh and begin submitting timely payments. Go the extra mile to prevent late arrivals, such as setting up automated payments each month or submitting payments online. Because payment history makes up 35 percent of credit scores, it's imperative to communicate with creditors and bills collectors if you cannot make a payment by the due date. They may grant an extension without penalty to assist you.
Warnings
Beware of credit repair companies that offer to fix your credit by eliminating bankruptcies, collection accounts and liens from your report. Credit repair isn't a free service, and enrollment requires a monthly fee. Unfortunately, credit repair companies cannot guarantee results, and they may suggest illegal activity such as encouraging you to create a new credit identity.
Credit Master, LLC is proud to offer a guaranteed satisfaction service. If we fail to remove at least one negative item or improve the credit score by 20 points, we will refund the full amount (minus a $100 set up fee) without any questions. The following terms do not apply if the customer has further negative item(s) on the credit during our first 120 days of service.
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