It can be stressful to have to deal with a negative credit score. It is much more frustrating when you’re reminded of bad decisions you made in the past. It can be difficult to get a good credit score, but it’s doable. Read on to find out how.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. Try to secure an FHA loan; these are federal government guaranteed. FHA loans offer lower down payments and help with closing costs.
Start by paying off credit cards with accounts 50% over your limit. You can concentrate on another card once these accounts are lowered to under half of your limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
Credit Score
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. The creditor does not care what happens to your credit score, as long as they get their money.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
One way to increase your credit score is to become a member at a credit union. You may find that the credit union has more options and better rates to offer you than banks will.
If you notice credit reporting errors, always file a dispute. You should compose a letter to the agencies that have made the errors, and provide proof that you are correct. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
If at all possible, avoid filing bankruptcy. Doing so will reflect upon your credit score and report for 10 years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
Make sure to fully read every single credit card statement that you get. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. You are the person responsible for checking that there are no errors.
If you go with a repair company to improve your credit score, be sure it is legitimate. Too many of these services will use your desperation to make money. There are numerous people that have been the victims of credit repair scams. Use online reviews and other resources to find an honest agency that can help you.
If you are trying to fix your credit, be aware of lawyers who claim to instantly fix your credit. Because of the surge of credit issues out there, a lot of unscrupulous lawyers advertise that they can repair your credit for large fees. Check up on the track record of any lawyer whose credit advice you intend to seek.
If you follow the tips in this article, you will see positive results in building your credit score back up. The main key is to commit to your plan of action and not allow your liabilities slip by. It is time to put some time and efforts into this project. Keep in mind that you will be rewarded.
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