Getting your credit card debt under control
Late payments, dismissed bankruptcies and credit card debt can all damage your credit score, but those incidents won’t necessarily keep you from ever obtaining good credit. It may be possible to fix your credit without waiting years for something to happen.
Using store credit cards
One option could be to obtain smaller credit cards. You may be able to just ask for a card from a store you choose. Using these credit cards and paying the monthly bills on time, can help improve your credit. Also, ask the store whether they actually report anything to the credit bureaus so that your efforts will be counted towards your score.
Banks issuing secured credit cards
Asking for a secured credit card from your bank may be another method you can try. In general, this card will put money in your savings account to establish a credit limit. The security in the card comes from the idea that you are depositing your own money up front.
If you pay your bill by the deadline every month, then you are likely to increase your credit score over time. Banks may also push the credit limit up after some time.
Paying existing credit card debts
Alternatively, you can also just pay your existing debts if you have the financial means to do so. It’s possible that any payments made on time, including payday loans or mortgage bills, can go on your record.
Focusing on paying old credit card debts can help you improve your score while getting financially stable again.
Fixing errors on your credit report
Errors on your credit report can hold you back if you haven’t checked your record yet. You may be entitled to rights under the Fair Credit Reporting Act to fix these mistakes on past credit reports.
Writing a dispute letter
If you do find any errors on your report, you may decide to write a letter of dispute to the consumer-reporting company and request that you get a review of your credit. It might be beneficial for your case if you include evidence that these errors exist. You may include any documents along with your letter that provides proof of your argument.
An investigation of your case will most likely occur within 30 days of your request.
Periodically checking your credit score with the credit bureaus may be advised to ensure that you are on track to obtaining a better credit score and to possibly avoid future discrepancies.
Debt advice from a lawyer
If you need additional help with repairing your credit, you may consult with a debt resolution attorney who may provide the legal advice you need to boost your credit score again.