Helpful Credit Fixes
In order to do a credit fix, it is important to know how to avoid some scams and claims. Many companies will claim to be able to remove judgments, bankruptcies, bad loans, or liens from a credit file. Some companies may even claim to remove bad credit or make a new credit identity.
According to the Federal trade Commissions, most of these are just scams. Even attorneys from the country’s consumer protection agency have yet to find a legitimate credit fix operation that has followed through on such claims.
Legally, no one is allowed to do a credit fix by removing timely and accurate negative information from a credit report, so it is important not to believe that these credit fixes will really work. The only thing that is allowed is removing negative information that is incomplete or inaccurate.
Here are some credit fixes that will help improve a credit score:
• If the bad information on a credit report is the result from an outstanding debt, work to repay these debts as rapidly as possible. It is ideal to pay off debts that have the highest interest rates before those with lower interest rates.
• If the debts are too overwhelming, a nonprofit credit-counseling organization may be helpful in making a plan to repay debts. A counselor can help consolidate debts and can talk to debtors to try to eliminate or reduce extra finance charges.
• Attempt to maintain a lifestyle that can help with the credit fix. Make sure to make all payments for rent, mortgages, and utilities before they become late, maintain the same job and residence, and keep a savings and checking account. Furthermore, create and follow a budget.
• Punctually paying off monthly credit card balances in order to avoid late fees is an effective credit fix to follow.
• Cut off credit card use to avoid even more debt.
• Setting up payment reminders in order to prevent late payments, which can have a very harmful effect to a credit score. Banks will often provide this service through the online banking sections of their websites. Automatic payments are another possible way to avoid late payments.
• Pay more than just the minimum on the monthly payments.
• Ask for a copy of a credit report and check for any errors. If there are, they should be corrected.
• Avoid large purchases until paying off all the credit card debt.
• Transfer the debt to a lower interest credit card.
• Pay half the minimum twice the month to reduce the monthly average, which will reduce the finance charges that are assessed.
• Close the newest accounts to make the average age of credit history older.