You need not suffer the effects of bad credit, no matter how you wound up with credit problems. Whether you have been personally damaged by economic conditions, victimized by dishonest lenders or even were simply too carefree in your spending, you deserve better credit. You can turn things positive on your credit report by starting with these steps.
If your credit is not perfect, getting a mortgage can be tricky. If you are in this situation you should look into FHA loans before speaking with a bank. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
If credit score improvement is your goal, create a plan and stick with it. You have to stay focused and committed if you want to make concrete changes to your financial situation. Don’t buy anything unless you absolutely need it. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
Credit Rating
If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. If you use a credit card well, your credit rating will begin rising.
Think about getting an installment account to save money and improve your credit score. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. If you use these accounts, your score will go up rapidly.
Work with the companies to whom you owe money to get your debt back under control. Maintaining contact shows your good faith and can help you minimize further debt. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Contact your creditors to request a reduction in your credit line. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Credit Card
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
To show that you are serious about improving your credit, start systematically lowering all of your account balances. Start by paying the cards or accounts with the highest interest rates. This can prove to creditors that you are serious about paying down your debt.
When you receive your credit card statement, go over it carefully. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. You are responsible for the accuracy of information on your credit card statments.
Phone Calls
Collection agencies are stressful to deal with. Cease and desist correspondences can be legally used by a consumer to put off collection agencies; however they only help stop the harassing phone calls. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. With the advice you were given in the above article, you can get to work on improving your credit score today.
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