Repairing the damage that has been done to your credit rating is not as difficult as it once was. There are many tools and resources available to help you with the process these days. The following advice will help enlighten you to the prospect of having a credit score of which to be proud.
Be careful about which collection accounts you pay off. With the current way the credit reporting system is structured, paying off a collection agency may actually lower your score because the date of the last activity will be reset. A paid collection has no less of an impact on your score than an open collection. This resetting of the date of the last activity also means the seven-year reporting clock will restart. If you can wait out a collection agency, do it.
Buy in cash. Credit and debit cards have made purchasing a thoughtless process. We don’t often realize how much we have spent or are spending. To curb your shopping habits, only buy in cash. It will give you a visual of how much that item actually costs, and make you consider if it is really worth it.
With the new credit card laws in place, banks must now decline your card in the event of a possible overdraft. They will most likely try to get you to opt-out of this, claiming that it is a service they provide to approve the purchase anyways, and then charge you a small fee. These fees are high. You will be much better off getting declined and using a different bank account or credit card for your purchase, than paying their fees.
Now that you are aware of how simple it can be to repair your credit standings, you can benefit by using the advice and getting to work on doing the necessary repairs. Work at improving and sustaining a positive score so you have more opportunities available to you throughout your life.