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With the change in economy, towards recession, thousands of people are faced with a diminishing credit score rating.  Companies, in order to survive the depressed economy, have resorted to layoffs, decreased work hours, and elimination of part time workers.  Many are facing the problem of how to maintain their credit position or how to improve credit score ratings.

 

Losing employment creates a real challenge for you in dealing with your bills.  Of course, if you have savings then this will carry you into the future and delay your credit problems.  But, this is the best time to attack your credit issue to improve credit score.  The following is a few tips to get you started to protect your credit score rating.

 

Make a list of all of your creditors.  Separate out the credit cards, so you can work on these first.  Arrange them in highest to lowest interest rate.  Before your credit starts to change, you want to see if you can qualify for a new credit card that has a low interest rate.  Usually you will get a lower interest rate if you transfer a balance from a high interest rate card to the new card.  Getting your interest rate reduced can help to improve credit score by preventing you from defaulting on the loan.

 

It is always best to apply for new credit cards, if you are still employed or if you just recently lost your job.  Having too many credit cards can be detrimental to your credit, if they have a high balance.  Use the new credit cards with a lower interest rate only to move balances from the old credit cards with a high interest rate to them.  You will be able to pay these new credit cards off much quicker and improve credit score.

 

If you have old credit cards that have high interest, call these companies and negotiate a lower interest rate.  If you lost your income, inform them that you will now have a difficult time making payments on time.  Remind them that you want to maintain a good credit score rating and improve credit score.  Tell them you don’t want to default on your loan and need their help.

 

Not all credit cards companies are friendly.  Some of them will not make concession until you stop making your payments.  This is unfortunate since you may need help now when you ask for it not 6 months later during default.  When you find a company that is hard to work with just keep calling them to discuss your issues, since you need to maintain your credit score rating.

 

Despite all of your efforts to stop degradation of your credit score, you may not be able to improve credit score.  If you cannot keep up with your payments, you will not only lower your credit score but you will be charged with late payment fee, which will increase your debt. After six months of none payment, you loan balance is normally sold to a collection agency.

 

Once a collection agency has your account, the will hound you, lie to you, threaten you, and call you many times at home and work.  They will remind you that you want to improve credit score not break it down.  Despite that a credit collection agency has purchased your account balance from a credit card company, they have no legal right to collect your balance. 

 

A collection company will not send you a letter and even if they do, they cannot sue you in court to get you to pay, since your original payment contract was with the credit card company and not them.  So they have no documents saying you legally promised to pay them for the credit card loan.  Your credit score rating and efforts to improve credit score now have to wait for another time, while you work through the credit collector’s efforts to collect money from you.

 

Losing your job or having reduced income changes your entire prospective on life.  Now you have to work to improve credit score or credit score rating, since these credit scores will determine what you will be able do financial in the future.  If you are unable to pay one credit card, then don’t let the collection agency intimidate you into thinking you need to pay this.  The damage has already been done to your credit and it’s time to try and prevent default on your other credit card accounts.

As consumers continue to extend themselves by using more and more credit, their ability to repay their debts and loans is becoming harder and harder. As a result, the median credit score is taking a plunge and lenders are faced with turning away more business. Those who are seeking to get approved for a loan are left facing the facts of their repayment history and money management skills.

Before applying for the loan you need, there are a few steps every consumer should take before allowing lenders to take a look at your financial resume. The first thing you want to do is order a copy of your free annual credit report to review it for errors. Studies show that 75% of credit reports contain erroneous information, and 1 in 4 actually impact consumers in a negative way. You deserve fair representation, and the credit bureaus are required by the Fair Credit Act to review and respond to any disputes on your credit report within 30 days.

Once you have accessed your free annual credit report, it is time to work on your raise credit score strategy. This is a two part process: dispute credit report errors and find inefficiencies in your credit behavior. Here’s what to do with your report:

1. Take out a pen and a highlighter

2. Circle any errors that are on your report including and make a notation as to why the item is incorrect: accounts that you have open but are marked closed, late payments that didn’t occur, the wrong Social Security number.

3. Now take a look at your credit report and highlight any “problem areas” that are legitimate claims and may be hurting your credit score.

Now that you know why your credit score is what it is, it’s time to take actionable raise credit score steps that will have the greatest impact in the shortest amount of time. Start with taking a look at your available credit to debt ratio and make sure it is below 30%. This is the fastest way to make an improvement in your credit rating, and can be done just by picking up the phone and requesting a credit limit increase (of course there are some tricks on how to make that happen every time). Continue to find other credit behavior issues that you can change to immediately increase your credit score.

From there you want to start the dispute process. Since this can take up to 30 days, you want to get started on this early. If you need to raise your credit score quickly, your best bet is to pick 2 or 3 items that are hurting your reputation as a borrower the most. This will get the reporting agency to work fast for you. Plus, if you submit everything at once, the reporting agency is less likely to take you seriously.

If you are interested in boosting your credit score then this article will provide you with some good information about how to do this. Everybody who wants to borrow money, whether a loan, mortgage or credit card, needs to have a good credit score. If you do not have a good credit score then you will either be refused finance, or you will pay much more interest for it. This article will look at the two main methods which are credit score boosters. You really need to do both of them if you want to improve your credit score.

The first credit score booster is to get any errors contained in your credit report remedied. You need to apply to the credit bureaus to get a copy of your credit report. You can apply to Experian, Equifax or Trans Union. Each credit bureau will send you a free copy of your credit report each year if you request it. Once you get your credit report go through it carefully and fix any errors. You fix errors in your credit report by sending the credit bureau concerned a dispute letter. You can find template dispute letters by searching on the web.

The second credit score booster is to review your finances and make sure you’re able to pay all your bills on time. Each time you make a financial transaction such as paying a bill or a loan payment it is recorded and the information is passed on to one of the major credit bureaus. So a good credit score booster is to always pay your bills on time. Always try to keep the total amount of credit you have to half or less of the total amount of credit which is available to you. For example, say you have a credit card which has a $2000 limit. Try to keep your borrowing on this card to no more than $1000. If you are unable to pay off your credit cards then make sure that you at least make the monthly payments required.

In conclusion, if you follow these two credit score booster tips you should be well on your way to improving your credit score. It is not easy, but you will be glad that you put in the effort to do this the next time that you apply for new credit. I hope that this article has helped you to understand how to boost your credit score.