<br/>Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. You can reverse the effects of these actions though.
<br/>The number one method of successful credit score improvement is paying off any debts that are outstanding. Letting your debts sit idle or, even worse, continue to grow will hamper any other steps you intend to take to resolve your credit problems.
<br/>Consumers should carefully research credit counseling agencies before choosing one with which to work. There are some counselors that are real, while others are basically scammers. Other options are clearly scams. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
<br/>Get a written copy of any payment plan you negotiate with a creditor. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. As soon as you get it paid off, have that in writing so you are able to inform the credit reporting agencies.
<br/>Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Some creditors have no concern over how your credit score can be affected by entering into certain agreements. These people just want your money.
<br/>Make a definite plan to pay past due and collection accounts. Although these accounts won't be expunged from your credit report, they will reflect the fact that you have paid them in full, and the problems you have encountered as a result of having unpaid debts on your report will be reduced or eliminated.
<br/>Doing this will ensure a good credit score. Late payments are reported to all credit report companies and will greatly decrease your chances of being eligible for a loan.
<br/>Good credit scores allow you to take out loans, buy a house, and make other large purchases. Fulfilling your mortgage obligation in a timely fashion does a great deal of good for your credit rating. Owning your own home gives you a significant asset to use in securing your finances, and your credit score will reflect that asset. These benefits will pay off if you need to secure a loan.
<br/>Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. In most cases, creditors are somewhat limited in the amount of interest they can charge. Although, in reality, you did agree in advance to pay any interest charges incurred. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
<br/>With some instruction and some hard work you can help your credit get back where it needs to be, so don't be fooled by how hard it may seem. Use what you have read here to get back on track with your credit.