Bad credit is a very frustrating thing to deal with. Bad credit makes it difficult to take advantage of any financial opportunities that arise. There are a few things you can do to improve and protect your credit.
Financing a home is not always an easy task, especially when you have less than perfect credit. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
When you want to fix your credit, you need to start somewhere. Have a realistic plan and stay with it. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Only purchase something if you cannot live without it. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
When you have better credit, you will be offered lower interest rates on loans and credit cards. This should make your monthly payments easier and allow you to pay off your debt much quicker. Make sure to use a company that gives you the best rates so your bill isn’t being built up by money you haven’t even spent.
Interest Rate
Getting a reduced interest rate is the easiest way to reduce your overall debt. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. However, you agreed to pay the interests off when you signed the contract. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
If you want to fix your credit avoid companies claiming they can remove all of your issues, even those properly reported. Negative info stays on your history for seven years! You can erase information that is incorrect from your credit record.
You can work with the credit card companies to start repairing your credit. You should contact the company and request a lower interest rate or a due date change if necessary. Contact your credit card company and request to change your scheduled due date or interest rate.
Before using a credit counselor, it’s important to research them completely. Although some credit counselors are truthful and legitimately helpful, other credit counselors are not honest and upfront with their motives. Others are just plain fraudulent. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
It is important to get any payment plan that you agreed to with a creditor in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. Every time you get a debt paid off, ask the company to notify the credit bureaus.
Credit Score
Bankruptcy should be filed only if absolutely necessary. Doing so will reflect upon your credit score and report for 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
If you want a higher credit rating, you will need to bring down the balance on any existing accounts. Your credit score can be raised just by reducing your balances. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.
The tips within this article will help you repair your credit score and continue to have control over your debts. A high credit rating is essential for most people, so learning about repairing your credit is hardly a waste of time.
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