Having poor credit means you might not get the results you want from companies that look at your credit. Having negative credit limits what you can do and unfortunately, predetermines your future, as well. It is not all hopeless, however. There are ways to repair your credit and get your life back on track. Here is some useful advice for fixing your credit score.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. Try to secure an FHA loan; these are federal government guaranteed. You may even qualify for an FHA loan if you don’t have enough money for a down payment or the closing costs.
The first step to repairing your ailing credit is to create a manageable, feasible financial plan. Be totally committed to changing your spending habits. Be sure to buy only the things that you need. Before making any purchase, determine if it is within your means and if it is indispensable. Don’t buy the item unless you answer “yes” to both of these questions.
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you get a new card and use it responsibly, it will help to improve your credit score.
Interest Rates
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
No credit repair company can remove factual information, no matter how damaging, from your credit report. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Incorrect information may be erased though.
One of the first steps of improving your credit score is ensuring that your bills are always paid. You must pay them on time and in full. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
Be very wary of programs that do not sound legal; chances are they aren’t. There are scams all over the web that teach you how to create a new credit file. Creating a new credit file is very illegal and you can be easily caught. Not only can legal fees add up, but you could end up in jail.
When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
Dispute any errors that are on your credit report so they are removed. You should compose a letter to the agencies that have made the errors, and provide proof that you are correct. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
Look through your credit card statement each month and make sure that it is correct. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Payment Plan
If a creditor agrees to give you a payment plan, get that payment plan in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Bankruptcy should be filed only if absolutely necessary. It can adversely affect your credit for up to 10 years. You may think that bankruptcy is your only option to rid yourself from debt, however look at your long term financial goals before deciding to file for it. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Repair your negative credit to open up more opportunities in the future. You can fix your credit, free of charge. Employing the advice you have just read can point you in the right direction to rebuild your credit.
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