If credit repair is your goal, create a plan and stick with it. You must make a commitment to making changes on how you spend money. Stick to the essentials, and avoid frivolous purchases at all costs. Ask yourself if a certain purchase is both necessary and affordable. Buy the item if your answer to this question is “yes”.
Debt collection agencies are the most difficult part in having bad credit. You can use a cease and desist letter to stop any harassment from collection agencies. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
If you want to give your credit score an immediate bump, ask your bank or credit card issuer to lower your credit limit. Avoid doing this if you don’t think you will be able to maintain a low balance. Lowering your limit too far could mean that your credit is nearly maxed, which also doesn’t look good on your report.
When you’re trying to repair your credit, it’s not uncommon to feel pressured into payment plans that you can’t afford. Do not overdo it and run short; have a budget. If you make promises you cannot keep, you will be back in the same problem you are now.
Avoid using your credit cards. Using cash will ensure that you stick to your budget and don’t overspend. If you have to make a purchase with your card, pay it off right away.
Following the given advice will help tremendously in your credit building efforts. The most important thing is to be consistent with the process and make sure that you stay on top of your obligations. Clawing back from a credit disaster is doable, so stop making excuses and start today!
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