Bad credit can add salt to an economic wound. Your bad credit might remind you of your past, and the poor decisions or circumstances that led you to where you are today. The good news is there are many ways to improve your credit. Get started today with these tips.
Getting home finance can be quite tough when your credit rating is not good. Federally guaranteed loans (FHA loans) may be an option. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. There are laws that protect you from creditors that charge exorbitant interest rates. However, you agreed to pay the interests off when you signed the contract. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
Credit Report
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. Negative info stays on your history for seven years! You should know that mistakes and anything incorrect can be removed from your credit report.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. There are some legit counselors, and there are some that have ulterior motives. 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.
Credit Card
Give your credit card company a call and ask them to lower the limit on your credit card. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
When attempting to improve your credit, you should go over any negative marks with a fine tooth comb. 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.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. Having documentation is important for your records but also protects you in case a creditor changes their mind. Once it is paid off, you should get that in writing to send to the credit reporting agencies.
The most obvious way to get your credit score repair journey going is to pay down those pesky credit card balances. Always pay off the card with the highest interest rate first and then work you way down. This builds the positive credit history that creditors like to see.
Go through all the statements you receive. 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. It is solely your responsibility to be sure that everything is correct.
Credit Score Improvement
An experienced, honest credit score improvement agency can be very helpful. The credit score repair business has a lot of unfair and shady companies. It is sad to see how many people have been taken advantage of by credit score improvement scams. You need to research customer feedback so you can determine if a company is trustworthy or not.
When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. It can actually backfire. It brings attention to a part of your report you would rather a lender not look at very closely.
If you have a lot of debt that you cannot pay, it can create a mess. Spread your money among your creditors so that they each get a part of what funds are available. Minimum payments will keep your debt accounts in good standing, and will keep them from ending up in collections.
When you do not have good credit, you will not feel so good about your financial status and you might think it could never improve. These suggestions can help you get on track with fixing your credit.
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