Bad credit marks will prevent you from being able to work with other companies that offer credit on desirable terms. Unfortunately, negative credit can limit the things you’re able to do and can determine many things in your future. Luckily, you can repair your credit and help secure a better future for yourself. Follow these tips to repair your credit.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. Be totally committed to changing your spending habits. Just buy what you need, and forget unnecessary purchases. Ask yourself whether every purchase is both affordable and necessary, and only buy if the answer to both questions is “yes”.
You can receive a better interest rate if you have excellent credit. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Quickly paying off your debts is a good way to improve your credit score. This will give you access to more competitive rates in the future.
No credit repair company can remove factual information, no matter how damaging, from your credit report. It seems unfair, but accurate negative information will stick around for seven years. However, if there is incorrect information, you can have it cleared up easily by yourself.
Don’t attempt to fix your credit in a way that will result in you breaking any laws. Creating a new credit score or using a different identity seem like easy solutions but bad credit is not worth taking this kind of risks. Needless to say, this is against the law and you are likely to get caught. You could end up owing a great deal of money or even facing jail time.
If you notice credit reporting errors, always file a dispute. Include proof along with a letter disputing the claim to the agency that recorded the errors. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Credit Card
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. Transfer credit card balances to one card for loan consolidation. This allows you to pay off one credit card bill rather than many smaller ones.
Check your credit card statement each month and make sure there aren’t any discrepancies. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
Avoid filing for bankruptcy. This will reflect on your credit report for the next 10 years. It might seem like a good thing but you will be affected down the line. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
Make sure that you always read your credit card statement entirely. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. You are the only one that can verify if everything on there is the way it should be.
Try not to use your cards at all. Cash payments are preferable. Any credit card purchases should be paid in full the same month of purchase. Do not carry a balance on your cards.
Collection Agencies
Debt collectors can be like sharks. You can use a cease and desist letter to stop any harassment from collection agencies. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
You can start fixing your credit now, so you can have a better financial future. There are simple, free steps you can take to repair your credit. Follow the tips in this article to start repairing your credit today.
This is a limited-time offer. We are not able to guarantee availability if you wait!
