There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. This article will give you some tips on how you can improve your situation.
Having poor credit makes financing a home a nightmare. If you are in this situation you should look into FHA loans before speaking with a bank. You may even qualify for an FHA loan if you don’t have enough money for a down payment or the closing costs.
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. Using this card responsibly will improve your credit rating over time, and eventually you’ll be able to get a normal credit card again.
Credit Card
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
By keeping your credit score low, you can cut back on your interest rate. Lower interest rates make paying bills easier, and prevents you from incurring debt. It’s important to look for a strong credit offer with competitive rates; it will make paying off your debt and keeping a strong credit score much easier.
Try opening an installment account. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. Your credit score will significantly get better if you get an account.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. This information can stay on your record for about seven years. You can erase information that is incorrect from your credit record.
Credit Counselor
Make sure you do your research before deciding to go with a particular credit counselor. Although some can be quite legitimate, others have motives that are less than kind. You’ll find that other ones are just scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.
Give the credit card companies a call and find out if they will lower your credit limit. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Start living within your means. This might be a tough thing to get your head around. In the last decade, it has been way to easy for people to get credit. Many people have used this credit to buy items that they really could not afford at the time, and are now paying the price. Take a hard look at your financial situation to come up with a realistic spending plan.
File Bankruptcy
Try not to file bankruptcy if at all possible. It is noted on someone’s credit report for 10 years. It can be tempting to just go ahead and file bankruptcy to get out from under the debt, but the detrimental effects can be long lasting. Once you have filed for bankruptcy, it may become very difficult to secure a loan or open a new credit account.
In order to start repairing your credit, you should try to pay down the balances on your credit cards as quickly as possible. First, pay down your credit card balances, starting with the highest interest. This builds the positive credit history that creditors like to see.
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
You should locate a good credit score repair company to help you. As with most industries nowadays, there are a number of shady companies offering credit restoration. Many people have fallen for scams involving credit restoration. You need to research customer feedback so you can determine if a company is trustworthy or not.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. Use what you have read here to get back on track with your credit.
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