Rebuilding Your Credit
There are many steps you can take to begin rebuilding your credit. Yes, getting started might be difficult, but once you begin you will begin to see changes to your credit score and if you need guidance contact bankruptcy lawyers in Philadelphia. Consider the following credit rebuilding tips:
Every month set a date to review your credit score and monitor your progress. This will allow you to set goals for the following month.
In addition to negative information impacting your score, a misspelling of your name, or an address you have never lived at can impact your credit score so make sure to have this information corrected.
Negative information does not remain on your credit report for ever. For example,
-Late payments remain for 7 years from the date the payment was late
-Collection accounts remain for 7.5 years from the date of delinquency
-Charge-offs remain for 7 years from the date charged off
-Tax liens remain for 7 years after they are paid
-Bankruptcy remains for 10 years from the date filed
When you repay a collection account in full or settle the balance for less make sure to obtain the deal in writing. After you settle your debt do not be afraid to begin obtaining credit again. In reality in order to begin building your score it is essential to open credit again especially if you wish to purchase a home in the future. To obtain further information on home buying contact a real estate attorney in pa.
Make sure to not max out your credit card. Preferably, you want to use no more than 10 – 25% or so of the available credit on an individual card to score to maintain a positive score.
When you first obtain your credit score it is important to dispute any mistakes immediately. It is always a good idea to send a letter rather than filing an online dispute, and you want to send the letter to each of the major credit reporting agencies since they don’t share information with each other. Furthermore, the next time around be very careful because one late payment can drop your credit score.