Has bad credit made your life miserable? This economy has caused an unprecedented epidemic of bad credit. You can turn things around, though. A good start is to check out these tips to repair your credit rating.
If your credit is not perfect, getting a mortgage can be tricky. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
Credit Card
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you get a new card and use it responsibly, it will help to improve your credit score.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
A good tip is to work with the credit card company when you are in the process of repairing your credit. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
Anything on your credit report that you feel is inaccurate should be disputed. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Make sure when you send the dispute package that you request proof by signature that it was received.
Credit Card
Check your credit card carefully each month to ensure that there’s no incorrect information. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. If there is a change of heart, this paper will protect you. If you have finished paying it off, you should request a confirmation so you can send it to the credit reporting agencies.
Doing this will ensure a good credit score. Paying late is placed on your credit report which can hurt your chances of getting a loan.
Make sure the credit score improvement agency you are working with is legitimate. There are many scams that happen in the industry of credit repair. Some people have turned over all of their financial information to people who turned out to be scam artists, and they wound up in worse shape than before they started. Be a smart consumer and educate yourself by researching user reviews online to find a good agency.
If bad credit is causing your to worry, then these tips are your passport to a better life. There are a variety of ways to improve your credit rating.
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