Having bad credit can be stressful and annoying. It’s one of the main stumbling blocks to a successful life. It can limit your financial choices and keep you from taking part in good opportunities. But a few easy steps can help you repair your credit and guard it in the future.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
If you have to improve your credit, make a solid plan and follow it. You can’t just make up a plan and not change how you spend your money. Only the necessities can be purchased from here on in. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
Credit Card
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
You need to work with the companies from whom you have credit cards. Maintaining contact shows your good faith and can help you minimize further debt. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Before you hire a credit counselor, make sure that you have done your research. Although some can be quite legitimate, others have motives that are less than kind. Some are not legitimate. Before you conduct any business with a credit counselor, check into their legitimacy.
Consider joining a credit union. They offer a lot of benefits to their members and it can be easier to obtain a line of credit from them. Credit unions often offer better interest and more options than chain banks do.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Use a return receipt when you mail your package so that you can prove that the agency received it.
You cannot live a life that is beyond your means. This is nothing short of a lifestyle overhaul. The rise of consumer credit in the past few years has made it far too easy to buy items without being able to pay, and the bills are coming due. Be honest with yourself about what you can truly afford.
It will be easier to increase your credit rating if you only have one open credit card account. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
When you pay your bills on time, you are keeping your credit score high. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Simple tips like these will help you fix your credit problems and keep your credit healthy. Since having a solid credit rating is vital for various transactions, time spent learning how to repair your credit is not wasted.
This is a limited-time offer. We are not able to guarantee availability if you wait!
