Has your credit situation gotten to the point where it prevents you from sleeping at night? These great tips will get you on the right track to repair your credit and not have to worry anymore about what the future holds.
If you don’t have very good credit, financing your home may not be easy. FHA loans are good options in these circumstances, because the federal government guarantees them. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
Credit Card
Pay down the balance on any credit card that is 50% or more of the credit limit. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
Try an installment account to get a better credit score and make some money. An installment account requires a monthly payment, make sure you can afford it. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
Do not do things which could cause you to go to jail. Creating a new credit score or using a different identity seem like easy solutions but bad credit is not worth taking this kind of risks. You will be prosecuted, it is against the law. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
Contact the credit card company and ask to get your card limit lowered. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
Don’t spend more than you make. You may have to overhaul your entire mindset when it comes to money. Easy access to credit makes it simple for many people to buy expensive items that they do not have the money for, and a lot of individuals are dealing with the consequences of those purchases. Take a realistic look at your financial situation and determine how much you can actually spend.
Shut off all but one credit card if you want to fix your credit. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. You will be able to pay one bill instead of a plethora of small ones.
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Do not file for bankruptcy if you do not have to. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren’t worth it. If you have filed for bankruptcy in the past, it can be near impossible to obtain a loan.
Paying your credit cards on time keeps you in good standing on your credit report. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
Carefully read the small print on your statements. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. You are the person responsible for checking that there are no errors.
Your credit report doesn’t have keep you up at night worrying and stressing about your future. You can fix your credit and no longer have it hanging over your head constantly. Following these tips can get you the credit card report you’ve been wishing for.