With all of the problems presented by a bad economy, low credit scores are a more common problem than ever. Read on for some insightful techniques to improve your credit.
If your credit is not perfect, getting a mortgage can be tricky. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. If you do not have a down payment or money for closing, consider a FHA loan
Credit Card
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. In order to get the card, you will have to fund the account as sort of an insurance that shows the bank your debts are going to be paid. If you use a credit card responsibly, you will go a long way in repairing your credit.
You can easily get a mortgage if you have a high credit score. You will get a better credit score by paying your mortgage payment on time. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. This will be very helpful if the time comes where you need to take out a loan.
Paying off any debts you have that have high interest rates can help you to avoid paying too much. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you want to sue creditors, you need to state your claim that the interest rates are too high.
You can work with the credit card companies to start repairing your credit. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Give your credit card company a call and ask them to lower your credit limit. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. Credit unions have opportunities that are better than other places and are usually local.
Dispute every error you identify on your credit report. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
If you have bad credit, have your credit cards merged into one single account. It is important to make small payments or transfer a balance to the open account. In this manner, you can take care of all your credit card debt by paying down a single balance.
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. If you spot any mistakes, contact the credit company right away to keep them from reporting the mistakes.
If you need to repair your credit score, you should pay your credit card balances as fast as possible. First, work on the accounts with the highest interest rates and the highest balances. This will show creditors that you are responsible with the cards.
It is important for you to thoroughly look over your monthly credit card statements. Really analyze the purchases on your card to make sure you are not receiving any errant charges for items you never purchased. You need to be sure that everything is correct on the statements.
Collection Agency
Dealing with a debt collection agency is one of the most traumatic parts of a financial crisis. You can get a collection agency to cease and desist from harassing you but this does not discharge the debt. They can prevent collectors from continuing to call a debtor, but they do not excuse the debtor from his or her outstanding financial obligations.
Now you know how to repair your credit score, so get started on a plan of action. The faster you act, the less likely your lowered credit score will permanently affect your life.
This is a limited-time offer. We are not able to guarantee availability if you wait!
