Easy credit just might be the greatest seductress of the modern era. If you have fallen prey to its wiles, you are probably in need of some personal credit repair work. This is a common position to be in and not one to be ashamed of. By arming yourself with these credit repair tactics you can repair the damage and defend yourself better in the future.
Don't play the transfer game; transferring your credit from one card to another to avoid making a payment is only postponing the inevitable payment. Transferring your credit is not saving you money it is really costing you more, you have transfer fee's added with each transfer making the amount you owe grow.
Consider keeping current credit accounts that do not have annual fees open. Simply using these accounts to make a small purchase every once in a while and then promptly paying off the balance is a far better way to improve your credit than closing your accounts at once. A closure of credit accounts can actually hurt your credit rating.
Look into the statute of limitations on your debt. Your debt will have a statute of limitations: there is only a certain period of time that a debt collector can attempt to enforce collection via the courts. If the statute of limitations has run out, you will be able to successfully negotiate, and in some cases, the collector will cease to pursue the debt.
One of the most effective ways of re-establishing your credit is to look into getting a secured credit card. You are going to have to put a deposit on it and make a monthly payment as you would a regular credit card. This is going to help you get your credit score up.
Don't close a credit card account that has a balance. If the card is not in default and you close it, it will reduce your credit limit on that card to zero. FICO will factor in that card as if you are using one hundred percent of your debt availability, and that will lower your credit score.
Don't file bankruptcy to repair your credit. Bankruptcy will not improve your credit. In most cases your credit will get worse. Bankruptcy will remain on your credit report for seven to ten years, making it harder to get a loan or credit card. Even after the bankruptcy falls off your credit report it can still hurt you as most companies will ask if you have ever filed.
When dealing with creditors or debt collectors, always act in a professional matter. This does not mean you have to take abuse from them. Know your rights when dealing with debt collectors, many times, they overstep their bounds. You have rights as a consumer, if you feel you are being harassed, consult an attorney.
Pay your credit card bill before your statement is due. Most credit card companies will report the balance of your last statement to the credit bureau so even if you pay your balance in full it might not help your credit score. If you pay that payment before the next statement is ready then you will stand a better chance of raising your credit score.
Methods like these will help you repair your credit and learn to resist the temptations of easy money. Credit repair is not easy or fun, but it can be a learning experience. When you have conquered your personal credit crisis you can hold your head high and be confident of avoiding such pitfalls in the days ahead.