I will give 5 of very important steps to repair and maintain good credit.
Do not fall into this trap! Once you get into this habit, it will be very difficult (if not impossible) to break. If you paid a minimum payment (approximately around $ 250) out of a total of $ 10,000 in credit card debt with average interest rate of 9.99%, it will take about 20 years to pay off debt and paying an additional $ 5,000 in interest.
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The solution is to add an additional $ 100 per month for the minimum payment. It will not only save you about $ 3,500 of interest you will incur debt in less than three years.
Obviously, if you cannot afford an extra $ 100 on top of your minimum payments that you have to pay whatever you the income situation allows you to pay. Essentially, you will save a ton of money on interest, and will be debt free much sooner.
# 2) removes all fat!
What I mean by “Cut the Fat” is to keep five business lines open and close all other remaining business lines. Here’s what you should have …
Example: a mortgage, car loan (if necessary), and 3-4 credit cards. The credit cards that you need to keep are those with low interest rates, can earn reward points, and preferably the credit card companies that have good customer service departments.
Try to stay away from those who receive an annual fee. I found my credit card Credit Union and Bank are the best because you can manage them more easily with online banking for free.
# 3) It is good to use credit, just do not abuse it!
A good rule is to try to keep the balance below 33% of the limit. In this way, your credit score will remain in good standing and your payments will not get out of control. It will also allow you to stay away from the credit trap. So if your limit is $ 1,000 you keep balance under $ 330 if possible.
Debt consolidation No. 4) and a credit counselor to the consumption is bad news!
No matter how good the sales pitch is to stay away from him. It cannot repair your credit or improve your credit score, but instead it actually lowers your score.
I suggest you go to a settlement company to negotiate your debt balances and interest rates for you.
This would ultimately reduce outgoing payments and your total debt.
# 5) dispute, dispute!
There are hundreds of millions of social security numbers issued in America.
There are only three major credit bureaus (Equifax, Trans Union and Experian) to collect all our data and credit information. They are bound to make mistakes and errors on your credit report. The only way to remove them is to challenge them in writing to the creditor and all three credit bureaus.
The trick is to send a letter with a label of receipt to all three bureaus. The Federal Act on the Fair Credit Reporting provides 30 days to answer them back. If the creditor cannot verify the validity of your debt in this period, then it will be permanently deleted from your credit report.