A bad credit rating can exclude you from access to low interest loans, car leases and other financial products. If you don’t pay your bills and fees on time, your credit score will suffer. Improving your credit score can start right here, by reading the tips found in the following article.
Financing homes can be made more difficult when your credit score is low. 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. Even if an individual does not have money for the down payment to purchase real estate or pay closing costs, FHA loans may still work.
Credit Card
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. Using this new credit card in a responsible manner will help to build back up your good credit rating.
You will be able to get a lower interest rate if you keep your personal credit score low. Lower interest rates make paying bills easier, and prevents you from incurring debt. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Creditors just want their money and really aren’t interested on how it will affect your score.
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. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
Dispute every error you identify on your credit report. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Make sure when you send the dispute package that you request proof by signature that it was received.
Do not spend beyond your means any longer. You need to change your way of thinking in this regard. In many cases, people are using credit cards to buy things they want, rather than focusing on things that they need. Examine your finances and make wise decisions about how much you should be spending.
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. Call your credit card company and try to work out a repayment plan, or transfer the balances of multiple cards to one lower interest card. You can pay down one credit card in full, rather than chipping away at many.
Check over your credit bill each month to make sure there are no errors. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
Pay your bill early or on time each month to ensure that your credit score stays good. Each late payment that you make shows on your personal credit report and can hurt you when the time comes to take out a loan.
Take the time to carefully go over your monthly credit card statement. It’s up to you to ensure that the charges on your bill are correct and that you haven’t been double charged, overcharged or charged for something you didn’t buy. It is only your responsibility to make sure everything is correct and error free.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Try to make purchases using cash only. If you have a situation where you have to put a charge on your credit card, make a point to pay it off as soon as possible.
Your credit score affects the interest rate you will pay on any type of loan. Even if you have bad credit, things are not hopeless. Read the tips presented here to help improve your credit scores.
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