There are many reasons to settle and take care of credit card debt. Not only can your credit score be adversely affected by an outstanding or unpaid credit card debt, but you can be taken to court for it as well. Being sued is never pleasant. Unpaid debt does have both legal and tax implications. Here’s what you should know.
Set goals to trace your credit improvement efforts. For example, produce a tracking list for your credit repair letters. Note whom you send letters to so when. Set up reminders to check on your score regularly to determine whether it has improved. Create dates on when you’re going to repay your debt and recheck Primary Tradelines your score.
Length of credit history means how long you’ve had your credit accounts. If you’ve had an account for 15 years, it is stronger than a having a new account open for only two months. An important tip here is to never close your credit cards. Keep your old accounts open if they are in good standing, even if you don’t use them and there’s a zero balance. Remember though, you do need to use your credit lines at least every 6 months.
Each company’s website will have the necessary forms to fill out to dispute anything on your credit report. They make it really simple to repair your bad credit and improve your credit score. Follow through on this step! There are lots of lenders who are willing to work with people who need to repair their credit. It is, as said in the first sentence, a sign of the times. Your interest rates will most likely be higher, but if you stay current on your payment obligations your interest rate should go down. Also your credit limit will go up. This will help high limit primary tradelines. Paying on time consistently, you will overcome and repair your bad credit.
Since you are just starting out it makes sense to start small and apply for just one card. I’d recommend getting a secured credit card only from your bank. An advance payment may be required from you. The amount you paid as an advance payment will be the amount you can initially spend. For instance, the advance payment required may be two thousand dollars. That means that you can spend up to two thousand dollars initially. You should know that all charges you made on purchases will be deducted from your advance payment.
Going through your current credit report for any mistakes is a vitally substantial element to attempt to remember. Getting a copy of your existing credit report is obviously the first step to take. The next part of this process is to write and contest errors or inaccuracies you have found. The amendment of any mistakes will really boost your total credit score.
Live Like a Millionaire – Guess what most millionaires have in common… If you answered that they’re completely debt-free, you’re absolutely correct. Financial blessings and debt don’t work well together at all. And sure, money doesn’t exactly buy happiness, but not having money does contribute to a state of perpetual unhappiness. Pay off the credit card bills in full and the momentum will encourage change for better financial health.