Do you find that issues with your credit score prevent you from sleeping? Our helpful tips will lead you in the right direction for credit repair and help you to have a credit report that you can be proud of.
Financing a home is not always an easy task, especially when you have less than perfect credit. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
Credit Cards
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! 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.
Getting an installment account can help you earn money and provide a boost to your credit. When opening an installment account, you need to make a monthly payment, so get something you can afford. Paying on time and maintaining a balance will help improve your credit score.
You won’t be able to repair your credit until you are able to pay those bills. To help your credit, you should be paying the full amount owed within the time allowed. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.
Call your credit card companies and request that they lower your limit on your cards. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
When you are attempting to improve your credit score, carefully comb over your credit reports for negative information. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. These credit unions can probably give you better credit options in the long run.
If you find any errors in your credit reports, you should dispute them. Include proof along with a letter disputing the claim to the agency that recorded the errors. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Get a written copy of any payment plan you negotiate with a creditor. This will provide proof of your agreement in case any problems ever arise. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
To fix damaged credit, pay off your credit card balances as fast as you can. First work on the cards with the steepest balances or interest rates. This builds the positive credit history that creditors like to see.
Go through all the statements you receive. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
To accomplish getting a better rating on your credit, pay down the balances of your current accounts. Just lowering your balances can raise your credit score. FICO will base your score on what percent of your available balance is in use, so keep that in mind.
As you can see, your credit report no longer has to play the lead role in your worst nightmares. Not only can you fix your credit, but you can let your mind rest easier. You can have a dream worthy credit score by following a few simple steps shared in this article.
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