If you knew exactly the amount and to whom you owed the money, you might not have been in debt to begin with. Because of this, the time is now to manage your debt and mend your credit. The following advice is easy to put into practice, so read it and then put it to use.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. Look into alternative financing options like FHA loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Credit Card
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. By using a new card responsibly, your credit rating will start to increase.
If you have credit cards with balances that are greater than fifty percent of the maximum, you should pay those down as quickly as possible. It’s best to keep all of your credit cards below the fifty percent mark! Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
You can dispute inflated interest rates if you are being charged more than you should be. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. However, you signed a contract agreeing to pay off interests. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
Before you get into an agreement about settling a debt, make sure you understand how it’s going to affect your overall credit. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
Credit Unions
Credit unions are an option for those who have run out of options. Credit unions often offer better interest and more options than chain banks do.
To rebuild bad credit, it can be a good idea to get rid of your extra credit cards. You should only have one. Transferring multiple balances to one single card is a way to gain control of your finances. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
Take a look at credit card bills to make sure that every item is one you have charged. If you spot any late fees, immediately contact your credit card company. This can save you from having late payments reported to the credit reporting agencies.
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.
Take the time to carefully go over all your credit card statements. You will need to read over every charge on your account to check that it is accurate. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. If anything, it will just hurt you as it will draw attention to the negative event.
As you can see, common sense is the essence of rebuilding your credit and beating your debt. This information puts the lie to that notion, so start repairing your credit today.
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