When you know what you are already liable to pay, and to whom, you might be able to avoid incurring debt. Now it is time to figure out how to resolve the problems and create a better future. The following advice can greatly help you rebuild your credit rating.
An imperfect credit rating can make financing a home even more difficult than normal. 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.
Higher Balances
Any credit cards that have balances over 50% of your limit should be paid off until they are less than 50% of your limit. Credit card balances are among the factors taken into account when determining your credit score. Maintaining balances over 50% will lower your rating. You can attain lower your balances by using balance transfers to move debt from accounts with higher balances to those with lower balances, or by simply paying off some of your higher balances.
Avoid credit schemes that will get you in trouble. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. This tactic is not legal, and you face serious repercussions if you are caught. They may seem like a small matter, but if you get caught, you could receive heavy fines and even jail time.
Give the credit card companies a call and find out if they will lower your credit limit. Not only will this stop you from overspending, it will indicate responsible behavior to a credit card company, and may enable you to get future credit.
Credit Cards
Make sure that you pay more than the minimum balance owed on all of your credit cards to improve your credit. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. This helps creditors realize that you are using credit cards wisely.
To increase your credit score lower the amount owed on revolving accounts. Maintaining smaller balances can improve your credit rating. When balances are 20, 40, 60, 80 and 100 percent of the total credit available, the FICO system takes note of it.
Make sure the credit score repair agency is reputable. Too many of these services will use your desperation to make money. Some people have turned over all of their financial information to people who turned out to be scam artists, and they wound up in worse shape than before they started. Read all the reviews that you can find and you should be able to make a decision about who you can trust.
Debt collectors are an intimidating and stressful part of dealing with bad credit. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. Even though these letters will stop the phone calls from collection agencies, the individual is still responsible for paying the disputed debt.
Be wary of any company that tells you they can instantly fix your credit. The state of the economy has caused many lawyers to practice unethical methods by promising credit score repair for a steep fee and not delivering. Research any lawyer who claims to help repair credit before getting in touch with them for help.
The only way to repair credit is to be more responsible with your credit accounts. Prepaid or secured credit cards can help to rebuild your score without late payments or going over your limit. Doing so indicates to the person lending that you are a responsible person.
Write down a plan that guides you towards paying off your debts. When these accounts get paid off, they are still on your credit history, but they are then marked as paid, which is far less damaging to your score.
It is illegal for debt collectors or companies to threaten you. If this happens, be sure to document it. You need to know what the laws are that protect your rights as a consumer.
You probably noticed that in order to repair your credit score, you really need to use common sense. Using this easily-understood information can help you reach your goal.
This is a limited-time offer. We are not able to guarantee availability if you wait!
