With so many people suffering hardships, such as job loss and higher living expenses, that make it difficult to survive, it comes as no surprise that so many have poor credit scores. The following tips are presented to help you improve your credit score and help you be more disciplined with your money.
Getting home financing is no small feat, especially if your credit score is less than perfect. FHA loans are good options in these circumstances, because the federal government guarantees them. If you do not have a down payment or money for closing, consider a FHA loan
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Interest Rate
Having a lower credit score can lower your interest rate. This will help you afford your payments, and get out of debt quickly. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
Getting a reduced interest rate is the easiest way to reduce your overall debt. An interest rate that is shockingly high can possibly be ruled as illegal in certain cases. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
When starting to repair your credit, pay your bill on time from now on. You should always make an effort to pay your bills on time and in full. Your credit score will increase if you are consistently paying back your debts.
Always do research before contracting a credit counselor. Many companies are legitimate and hold your best interests as a priority, but some are outright scams. You’ll find that other ones are just scams. If you’re smart, you’ll make sure the credit counselor is not a phony first.
Stay cautious and aware of scams online that can lead you to even bigger problems. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. These scams are not legal and there will be repercussions. The legal consequences are expensive, and you might be sentenced to jail.
Check over your credit bill each month to make sure there are no errors. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. Any plan that you agree on should be put in writing and signed by both parties to protect you in the future. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
This is one of the quickest way to create and maintain a credible financial record. Each time you make your payment late it will go against you.
Lower the debt on revolving credit accounts, like store and credit cards, first. Your credit score can go up if you just bring your balances down. The FICO system has a new level for every twenty percentage points of your credit available.
Credit Score
Why would you wait until tomorrow to make changes that could be done today? You could easily use the tips that have been provided to better your credit score. Before your poor credit score harms the quality of your life, take the information learned from this article and apply it to your financial situation to help you get back on your feet.
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