Having credit problems is hard enough, but finding information on how to help fix your credit can be harder. If you are looking for such information, you are in luck. Remember these tips to save time and reduce stress.
Financing homes can be made more difficult when your credit score is low. If possible, apply for an FHA loan; these loans are backed by the United States government. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
If credit repair is your goal, create a plan and stick with it. You need to make a commitment to changing your spending habits. Avoid buying what you don’t need. 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 Cards
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
You can receive a better interest rate if you have excellent credit. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Getting better interest rates leads to an easily maintainable good credit score.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. It is likely you can have exorbitant interest rates reduced if you sue the creditor.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. Many may have ulterior motives, so make sure you are not being duped. Some are not legitimate. Before you conduct any business with a credit counselor, check into their legitimacy.
Contact the credit card issuer with a request to lower your card’s limit. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
When looking over your credit report, look closely at the negative report that are listed. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Credit Card
Examine your credit card charges monthly to ensure they are correct. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. This is the only way that you have of protecting yourself. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
Credit Report
Paying your credit cards on time keeps you in good standing on your credit report. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
To accomplish getting a better rating on your credit, pay down the balances of your current accounts. You can up your credit score by just keeping your balances lower. FICO will base your score on what percent of your available balance is in use, so keep that in mind.
Make sure that the credit restoration agency you choose to work with is reputable. Unfortunately, the credit repair business does have a significant number of companies that are not reputable. It is sad to see how many people have been taken advantage of by credit score improvement scams. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
Use the information presented here to repair your credit. It can seem like it is a losing battle, but after you have taken these steps, you will be able to enjoy the benefits of having credit again. Patience is your friend here. If you keep at it, you will reap the rewards.
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