Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. You can reverse the effects of these actions though.

It’s easy to lower your interest rate by ensuring your credit score is high. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.

If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. A responsibly used new credit card will begin healing your credit score.

Keep your credit card balances below 50 percent of your credit limit. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.

If your credit is good, it’s easy to get a mortgage on a new home. Paying down your mortgage improves your score as well. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. This is helpful in case you want to borrow money.

Do not involve yourself in illegal activities. Sites may act like you can create new credit lines and tell you how to do it. That is illegal and you are going to be caught. Legal repercussions will cost you a lot of money, and you could go to jail.

Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. If the information is correct, it will remain as part of your report, in most cases, for seven years. Incorrect information may be erased though.

A good tip is to work with the credit card company when you are in the process of repairing your credit. If you do this you will not go into debt more and make your situation worse than it was. See if the company will allow you to modify the monthly due date, or reduce the payments.

If you are trying to improve your credit score but are having difficulty gaining access to new credit in order to do so, join a credit union. They might be able to provide you with several more options at better rates than banks, since they work locally as opposed to nationally.

One excellent way to get your credit score back up is to close all your credit cards except for one. Then, try to arrange payments or transfer your balances to the one account you left open. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.

We have provided you with some valuable credit repair tips in this article. We hope it has helped to put you back on the right track. Use these tips so that once again, you can experience what it is like to take advantage of good credit. Just remember that repairing your credit takes time. The potential rewards make it worth your time to stick with a credit repair effort.


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