It’s no surprise that there are so many people facing the hardships of bad credit today given the current state of the economy, yet don’t become discouraged because of this. These tips can help you gain insight on how you can get a better credit score.
Financing a home can be difficult if you have bad credit. You should consider getting a FHA loan they are backed by the government. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
Planning is the first step to repairing your credit. Make a commitment to making better financial decisions. 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”.
Installment Account
Opening an installment account is one way to improve your credit score. When opening an installment account, you need to make a monthly payment, so get something you can afford. A properly managed installment account will work wonders on your credit rating.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Regardless of their claims, these debts will stay on your report for seven years at a minimum. You can, however, succeed at having incorrect information erased from your credit reports.
Always do research before contracting a credit counselor. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Others are just plain fraudulent. Before you conduct any business with a credit counselor, check into their legitimacy.
Good credit isn’t worth much if you are in lockup. The web is full of scams that show you how you can craft a deceptive credit file. This is illegal and you will eventually be caught. The legal consequences are expensive, and you might be sentenced to jail.
Before you commit to a settlement, you should first determine exactly how the agreement will affect your credit. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Most of the time they want their money and don’t care about your credit score.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.
Credit Unions
If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.
If you find any errors on your credit reports, dispute them. Include proof along with a letter disputing the claim to the agency that recorded the errors. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.
Credit Cards
Do not use credit cards to pay for things that you simply cannot afford. You will have to change your thought patterns in order to get your debt under control. In years past, many people relied on credit cards to make major purchases, but now those risky financial choices are catching up with them. Be honest with yourself about what you can truly afford.
Try to pay down all of your debts until you’re only carrying a balance on one. You can make arrangements to pay the balances, or transfer the balances of your closed credit card accounts to your single remaining credit card. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
Credit Card
Check your credit card statement each month and make sure there aren’t any discrepancies. You must get in touch with your credit card issuer as soon as you spot an error to make sure that it is properly handled and does not result in any negative reporting.
You may want to justify yourself, but the statement has no effect on whether a lender will extend credit to you or not. It is irrelevant. It may even draw more attention to the blemish.
Write down a plan that guides you towards paying off your debts. They will likely still appear on the credit bureau report but having them marked as paid is a lot better than having them appear as outstanding balances.
Now that you are armed with the information you need to repair your credit, don’t postpone implementing your plan. 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.