There are many reasons to settle and take care of credit card debt. Not only can your credit score be adversely affected by an outstanding or unpaid credit card debt, but you can be taken to court for it as well. Being sued is never pleasant. Unpaid debt does have both legal and tax implications. Here’s what you should know.
Avoiding making new requests for credit cards is a vitally substantial issue to strive to consider. These types of new application will produce a lot of redundant activity on your credit report. This is going to harm your credit score. That’s why refraining from making any new requests for credit cards Primary Tradelines without delay is exceptionally important.
By the way just where do I get these numbers? Heck, I make em up! Seriously though, I sample 10-15 of the top Wholesale Lenders to arrive at my rate quotes.
Paying Off Balances is Good for the Credit History – There are no surprises with this concept. By paying down balances as early as possible, you’ll be improving your primary tradelines with history too at the exact same time. Maintaining less than a 30% balance to available credit ratio is preferable for good credit, but zero debt is just better for the pocketbook all around.
Unsecured debt should never be paid off through a debt consolidation loan. With a loan, you have just moved the debt from one place to another and now it is secured with your home. In your current situation, if you don’t pay your unsecured debt about the worst thing that can happen is you could be sued by your lenders and they can put negative entries on your primary tradelines, but you will still have your home.
Secured cards allow you to pre-load funds from $200 to $1000. You don’t really have to worry about approval since they are not lending you the money, it’s your money you are spending. This makes it very easy for you to start rebuilding your credit fast.
The best thing you can do to improve your credit score is to pay your bills on time. By doing this, you will make a positive credit report and will therefore result in higher scores for credit. Remember that it is you who will determine if you have good credit or not. By paying your obligations on time, you will be able to improve your credit score.