You can feel like the bad guy if you have bad credit. Low credit scores can bring to mind memories of hard times in your life and past mistakes which were made, and these reminders can hinder your progress in moving ahead in life. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
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. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.
Credit Cards
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
Maintaining a respectable credit score will enable you to obtain lower interest rates. It will lower your monthly payments, so your debt will be taken care of at a much quicker rate. Quickly paying off your debts is a good way to improve your credit score. This will give you access to more competitive rates in the future.
By opening an installment account, it could help improve credit score and you could have a decent living. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. These things are, generally, on your record for seven years. If the information is an error, the credit report can be corrected.
One of the first steps of improving your credit score is ensuring that your bills are always paid. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
Credit Unions
Joining a credit union may be helpful if you want to work on improving your credit score and are finding it difficult to access new credit. 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.
Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Sending your letter by certified mail provides you with proof that the letter was received.
Look through your credit card statement each month and make sure that it is correct. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Timely payments will keep your credit status in good standing. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
Credit Score
You should locate a good credit score repair company to help you. Just like any other field, credit score improvement has plenty of companies that do not provide what they promise. Unfortunately, there have been quite a few people who have been scammed by these companies. See if the company in question has a reputation on any of the user review sites before you commence business with them.
Build your credit back up to repair it. Prepaid credit cards are great for this, since you can get improved with a bad credit score, and there’s no way to rack up debt and late fees. Potential lenders will see that you are working towards becoming more responsible with your credit.
It is easy to get down on yourself when your credit score is low. The credit repair tips in this article can get you in a new frame of mind, and make the first steps to improve your credit.