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Different Ways You Can Have Better Credit

SUMMARY With all of the problems presented by a bad economy, low credit scores are a more common problem than ever. Luckily the tips provided here are useful ways to get your credit score looking healthy once again.

BODY While you attempt to get your credit under control, you might feel tempted to send in a large amount of money that you cannot afford. Have a budget, stick to it and try not to over-commit yourself. Do not make promises to your creditors that you can't keep simply to get some relief from harassment for payment. Your creditors will not hesitate to note those issues on your credit report and be less likely to work with you in the future.

If you are having trouble making monthly payments, contact your creditors to see if you can work out a payment option. If you make the first move and hash out a payment plan sometimes they won't even report it to credit agencies. This can also help to relieve some of the financial strain that you have been facing.

Try opening an installment account. You need to review the terms of an installment account carefully, because you'll be required to maintain a certain monthly minimum. Your credit score will significantly get better if you get an account.

Carefully check all charges on your monthly credit card statement for errors. You don't want them reporting these to the credit reporting companies, so you'll need to contact them immediately if there are.

These are ways of protecting your credit rating. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.

Unfortunately, sometimes you have more debts than you have money to pay them off. Take the money you have for bills, and allocate a small amount to several creditors so you can make a little progress with each. Paying at least minimum payments prevents creditors from calling collection agencies.

Go through all the statements you receive. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. You must be accountable for each item on your statement.

If you see errors on your credit reports, dispute them with the credit agency. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.

Know how debt settlements will influence your credit score prior to making a decision. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. They are just out to get their money and do not care how that effects your credit score.

When you are having trouble paying your bills, debt collection agencies will start contacting you demanding payment. You can use a cease and desist letter to stop any harassment from collection agencies. Even though these letters will stop the phone calls from collection agencies, the individual is still responsible for paying the disputed debt.

One way to increase your credit score is to become a member at a credit union. Credit unions have opportunities that are better than other places and are usually local.

Your low credit score will cut your interest rates. Lower interest rates mean lower payments, which allows you to pay off debt faster. Make sure to use a company that gives you the best rates so your bill isn't being built up by money you haven't even spent.

Now that we have gone over the different ways you can go about repairing credit, why not get started now? The faster you act, the less likely your lowered credit score will permanently affect your life.

SOURCE: http://www.freedebtcreditscore.com Smart Solutions for Debt & Credit