Credit Improvement Tips
There are credit improvement tips you need to know that will raise your credit score if you apply it. First, you
need to know where you stand and what your score is. You also need to know what types of negative marks are on your
credit report. That way you know what you need to get rid of. Obtaining a credit report will be the starting point
if you don't have a recent one.
Lower Your Interest Rate (APR)
Find out what your APR or annual percentage rate is on each of your credit card. If they are really high such as
over 19% then you need to call up your credit card company and ask for a lower interest rate. Just tell them that
youve gotten offers in the mail for a lower rate such as 7.9% or a similar rate you researched from a certain
company and ask them if they can match it since youve been a good customer for many years. Do your research ahead
of time and find several companies that are offering lower interest rates for new customers. There are 80% of
credit card companies that will lower your interest through this method.
Pay Down Your Debt
The next thing you need to do is try to reduce your debt as much as possible. You should pay down the credit card
with the highest interest rate first to reduce the amount of finance charges you incur every year. Dont pay down
the card with the lowest balance on it first. Make an excel spreadsheet of all your credit cards, balances, APR and
due date. Pay the minimum every month on all your credit cards except the one with the highest interest rate. On
that card you want to pay as much as you can to pay it off faster. Then after that card is paid off, apply the
payment for the previous card to the credit card with the second highest interest rate. And so on Continue this
until all your debt has been paid off.
Use Credit Repair Services
If you currently have bad credit there are still things you can do to improve you credit score so dont despair. You
can look over your credit report and see if there are any errors, if there are, you need to write a letter of
dispute to the credit bureaus so they can have that removed. If you dont want to go through the tedious process of
writing dispute letters and following up with it yourself you can find a credit repair company that will do this
for you. You should research it to make sure its not a scam. If they mention anything unethical then dont do it
such as getting a new social security number, using a business tax ID in place of your social security number, or
reporting that you had an identity theft or credit fraud when you didnt.
Don't Max Out Your Credit Lines
Dont max out your credit cards. Lenders will think you are a high-risk prospect if all your credit lines are max
out. You should only carry less than 50% of your total available credit. For example: If the total available credit
on all your credit cards combined is $16,000 then you should owe less than $8,000. Credit lines include personal
loans, home equity loans, or other credit lines.
Pay Your Credit Card Bills On Time
Always pay on time and send payment at least 10 days before the due date to make sure that the payment gets there
on time and gets posted before the due date. You dont want any late payment fees or negative remarks on your credit
report if you can help it.
Pay More than the Minimum Amount Due
Pay $5-10 more than the minimum will help your credit score. Credit card companies will report that you pay more
than the minimum even if its just $5.
If you follow those credit improvement tips, you will see your credit score start to increase over
time. It does take a little work and time to see results. Stick with it and try to dig yourself out of debt as fast
as you can.
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