Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. Fortunately, there are quite a few ways that you can remedy your credit situation.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. Try to secure an FHA loan; these are federal government guaranteed. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
Credit Card
If you have a poor credit history and can’t qualify for a credit card, get a secured card. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. If you utilize a credit card responsibly, it can aid in the repair of your credit rating.
By maintaining a good credit score, you can decrease your interest rate. Doing this can reduce monthly payments, which will assist you in paying off any outstanding debts faster. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
To improve your credit rating, set up an installment account. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. If you use one of these types of accounts, your score will quickly improve.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. You did sign a contract and agree to pay interest. It is likely you can have exorbitant interest rates reduced if you sue the creditor.
Negative Information
One thing to watch out for when trying to fix your credit is scammers who say that they can get any negative information deleted from your credit, regardless of its accuracy. It seems unfair, but accurate negative information will stick around for seven years. You can erase information that is incorrect from your credit record.
Do not do anything that will make you end up in jail. There are many different places that claim they can help you get a new credit profile. This is illegal and you’ll get caught. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. 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 find inaccuracies on your credit report, make sure to dispute them. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Also include a request for a return receipt to make sure the agency gets it.
Go through all the statements you receive. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
Credit Score
Try and pay down any revolving account balances in order to boost your credit score. You could increase your credit score just by paying down some balances. The FICO system makes a note when your balances are at 20, 40, 60, 80, and 100 percent of your available credit.
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. In fact, it could actually make matters worse by bringing to their notice the negative aspects of your report.
Your credit cards are not doing you any favors; avoid using them. Pay for things with cash whenever possible. If you ever use a credit card, be sure to pay it all in full.
It can be terrible to deal with having multiple different debts that you are unable to pay. Make sure you pay all your creditors instead of limiting it to just a few. Even if all you’re making is minimum payments, this will keep you out of collections.
If you want to find an alternative way to pay, you should get a hold of them directly. Many creditors will come up with a payment plan to help you be able to pay your payments. Furthermore, this can help to redistribute your financial resources in a way that allows you focus on repaying debts that fall under more stringent terms.
In order to fix your credit score, you must have a plan that will help you lower your debt and actually make an impact. Existing debt lowers an individual’s credit rating and can be bad to have. Develop a budget that realistically reflects your situation and try to devote as much of it as you can to paying down your debts. When you get your balances clear, you will see a rise in your credit score.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. Use the information in this article to boost your credit score.