Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. You are in luck, though. These tips will help you get your credit score to that mythical 850.
For some it may hard to finance their home due to having less than ideal credit. If this is the case, try to get an FHA loan, which are loans backed by federal government. Even if an individual does not have money for the down payment to purchase real estate or pay closing costs, FHA loans may still work.
If you need to repair your credit, the first step is to come up with a workable plan and stick to it. Make a commitment to making better financial decisions. Only the necessities can be purchased from here on in. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
Keep your credit card balances below 50 percent of your credit limit. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
By opening an installment account, it could help improve credit score and you could have a decent living. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. You can improve your credit rating quicker using this type of account.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. In many situations, exorbitant fees and penalties can be challenged. You did sign a contract saying that you would pay off the debt. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
No credit improvement company can remove factual information, no matter how damaging, from your credit report. Regardless of their claims, these debts will stay on your report for seven years at a minimum. However, information that is not correct can be removed.
Give the credit card companies a call and find out if they will lower your credit limit. You will not be able to spend too much and they will see that you are responsible.
If you’re trying to fix your credit, be sure to check all your negative reports carefully. Even if a charge held against you is legitimate, any problems with its details, like the date or the amount owed, could make the entire entry invalid and eligible for removal.
If you come across a mistake on your credit report, don’t hesitate to dispute it. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Start living within your means. You need to change your thinking to consider your future goals, not just buy all of the things you want right now. Many people have acquired debts they can’t pay off, which has affected the amount others will pay to have credit. Be realistic about the lifestyle your income affords you.
You should look at your credit card bill every month to make sure it is correct. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Get a written copy of any payment plan you negotiate with a creditor. This will give you important documentation in case of an ownership change or if the creditor tries to back out of the agreement. If you manage to pay off your debt, make sure you receive proper documentation as proof to send to credit reporting agencies.
Credit Card Balances
When you start fixing your credit, pay down balances on the credit cards as soon as you can. First, pay down your credit card balances, starting with the highest interest. Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.
To earn a higher credit score, keep revolving account balances low. You can improve your score by lowering your balances. The FICO system has a new level for every twenty percentage points of your credit available.
An experienced, honest credit repair agency can be very helpful. Too many of these services will use your desperation to make money. It is sad to see how many people have been taken advantage of by credit score improvement scams. Reading online reviews will help you to choose a decent credit repair company.
Lenders do not care about the reason you have negative information on your credit report. Having some positive credit history is the only way that negative reports can be counteracted when lenders are analyzing your credit liability. Trying to defend bad credit may actually draw their attention to the area and cause more problems than it would have originally.
With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. Take the advice that has been provided in this article to start making positive steps toward better credit.
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