If you are one of the many people who struggle with poor credit, you should know that your situation isn’t hopeless. There are ways to repair your credit and turn your financial situation around. In this article, you will find out a few simple steps that you can follow to get back on the right track.
Paying your premiums in full instead of on a monthly schedule can help you save big money on your auto insurance policy. If you can pay a larger portion of a 6-month or 12-month policy, you should definitely go ahead and get the premium paid off. This will allow you to save some money over the life of your plan.
If you have challenged or denied negative items on your credit report and some still remain, you may be able to reduce that number even further by contacting the collection agency or creditor. By law, these companies need to provide written proof that the account is yours. This means a hard copy of a signed contract or other legally binding document, not just a printout of the information they have in their computer system. Many of these companies do not hold onto these documents. If they can’t come up with acceptable proof, they are required to remove the account from your credit report and stop all collection attempts.
Many people don’t realize that moving around a lot can also lower your credit score. Creditors will see you as unreliable and un-rooted if you change your address more than once every couple of years. If you are the type who can’t help but move often, consider getting a P.O. Box or other steady mail location where you can have all your bills and credit cards sent. This will reduce the risk that these companies realize you have moved.
When trying to repair your credit, do not fall for the scams that tell you they will help you to create a new credit file. Creating a new credit file is actually fraud if you decide to follow through. Since it is fraud, you can face legal repercussions if you create a new credit file.
If you cannot find a job because of your bad credit, consider starting your own business. Getting a loan to start a business requires a good credit, therefore, find a partner to help you start your business and have the partner use his or her credit score to apply for a loan. Once your business starts making money, you can improve your own credit score.
Buy in cash. Credit and debit cards have made purchasing a thoughtless process. We don’t often realize how much we have spent or are spending. To curb your shopping habits, only buy in cash. It will give you a visual to how much that item actually costs, and make you consider if it is really worth it.
By now you should realize that poor credit doesn’t doom you to a lifetime of financial despair. Many people with bad credit histories have followed the steps listed in this article and repaired their credit. You too can follow their example by taking this advice to heart. Before you know it, you too will be on the road to good credit.