Bad Credit is something that leaves every one feel restrained and think twice before buying or spending large amount of money.
Though there are several ways of improving bad credit but the guides available on the internet won’t share everything, because if they do who will seek assistance from a credit repair company.
But at Accurate Credit Solutions Now we will guide you through some hard-kept secrets.
Here are 7 steps to credit repair which will help you get back the ratings you always desired.
Step 1:- Avoid taking unnecessary and new debts, the outstanding amount you owe to the creditors should be paid first, put it in the list of your high priority tasks. This is an important thing to reducing your debts.
Step 2:- The second thing you need to avoid is creating new derogatory accounts. Instead you should pay your outstanding debts this will help you increase your score for coming years.
These were the 2 main things an individual with low credit ratings should avoid now focusing on the key points which you should follow.
Step 3:- Plan how to clear your debts, see and analyze the sources of your income. May be you need to change or find new origins of income in order to clear your debts. Pin point the areas where you are over spending and can reduce your expenses, increasing personal savings is the number one way to clear old debts.
Step 4:- Be a responsible person and pay your credit card bills on time. Use credit card as the last resort for making huge payments, if you have the right mind set and prevent yourself from overspending there is no one to stop you from keeping a good credit score. If there is a dire need to spend make sure you plan in advance on how you will pay these debts timely.
Step 5:- Keep an eye on Credit card balances never overspend, never use more than 30% of your balance. According to the experts it is better to have 5 credit cards with a 5000 dollar limit and using only $1000 to $1500 each rather than having a single credit card and spending $4000 to $5000 from it.
One important thing to remember is not to open too many credit card accounts at once this will negatively affect your credit score.
Step 6:- Request an annual credit report, as a consumer you are allowed to request one annual report free of charge, you are given the option of requesting three at a time or throughout the year. Analyze the report you have received and validate the entries in it for inaccuracies if any.
Step 7:- The most important step once you have the report in your hand is to dispute inaccurate, erroneous and obsolete data. About 80% of the credit reports have errors in them and most of these result in a low credit score. Since this is hurting you financially you want them removed as soon as possible.
Contact the right body like Accurate Credit Solutions Now and collect your data, review the data and find out the discrepancies that exists, to prove that you are right and report has flaws.
These basic steps will help you get back the confidence and ratings you always desired.