It is likely you have done something to damage your credit rating at some point in your life, whether it was a shopping spree, a predatory loan or just being a victim of bad economic luck. The good news is that there are some things that you can do to repair it.
If you don’t have very good credit, financing your home may not be easy. FHA loans are good options in these circumstances, because the federal government guarantees them. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
Credit Score
You can reduce your interest rate by maintaining a high credit score. Monthly payments are easier this way, and you can pay off your unpaid debt. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.
You can easily get a mortgage if you have a high credit score. Timely mortgage payments augment your credit score. Home ownership also means you have assets that you can rely on to increase your credit score. This will be useful in case you need to borrow money.
Work closely with all of your creditors if you are aiming towards repairing your credit. This will help you stabilize your situation and start working towards a better financial situation. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Always do research before contracting a credit counselor. Some credit counselors offer real help while others have more dubious things in mind. Many others are nothing more than scams. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
Be very wary of programs that do not sound legal; chances are they aren’t. Scams abound on the internet that show you how to change your credit file. Needless to say, this is against the law and you are likely to get caught. Penalties can include large fines and possibly even incarceration.
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 agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. Debt settlers are more interested in their money than your credit rating.
Dispute every error you identify on your credit report. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Sending your letter by certified mail provides you with proof that the letter was received.
The first step in credit improvement is to close all but one of your credit accounts as soon as possible. Transfer credit card balances to one card for loan consolidation. In this manner, you can take care of all your credit card debt by paying down a single balance.
Bankruptcy should only be viewed as a last resort option. This negative mark will stay on your report for 10 years. This may appear to be a wonderful idea where you rid yourself from all this debt at once, but in actuality it causes more harm than good. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
It can be stressful to try and figure out how to improve your credit, but if you keep at it, you can make things better and see the results you want. The advice offered in this article can help to get you back on track to repairing your credit.
This is a limited-time offer. We are not able to guarantee availability if you wait!
