You need to know what you owe and the companies to which you owe money before it is too late and still more debt is created. But now it is time to go into damage control mode and repair your credit. The following helpful hints are good ideas, and when applied, assist you in building back up your credit rating.
If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you use it correctly, a new card can help you fix your credit.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. However, the contract you signed ensured that you agreed to pay off your interest. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
Keep your credit card balances below 50 percent of your credit limit. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Don’t risk prison. The Internet is rife with many scams that will go into detail about creating yourself a brand new credit file and making the old one magically disappear. This is illegal and you will most certainly get caught. Legal ramifications can cost a lot, and you may go to jail.
Hopefully this information was useful. Use these tips so that once again, you can experience what it is like to take advantage of good credit. You must use persistence. With determination and perseverance, you’ll soon be proud of your success.
