Poor credit is a terrible thing for you to deal with as you journey through life. It can make you feel like you are in debtors’ prison with no hope of escape. Read on for some ways to fix your credit and reclaim your life.
Getting home financing is no small feat, especially if your credit score is less than perfect. FHA loans might be a good option to consider in these circumstances, as they are backed by our federal government. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
Interest Rates
Getting a reduced interest rate is the easiest way to reduce your overall debt. Creditors are skirting aspects of the law when they hit you with high interest rates. However, you agreed to pay the interests off when you signed the contract. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
Make sure you thoroughly research into any credit improvement agency or counselor before you do business with them. Many counselors are honest and helpful, but others may be less interested in actually helping you. Other programs, while they sound good, are complete and total scams. Before you conduct any business with a credit counselor, check into their legitimacy.
Don’t risk prison. The web is full of scams that show you how you can craft a deceptive credit file. Do things like this can get you into big trouble with the law. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Requesting that your credit card limits be lowered can benefit you. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.
Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. You are the only person that is responsible for making sure the statements are error free.
Do not trust anyone who promises you miracle results. Since a lot of people go through credit problems, predatory lawyers emerged that charge huge fees to repair their client’s credit in ways that are either illegal or useless. Make sure any credit repair service you consider has a positive standing with the BBB.
It is the worst when you have many debts that you are unable to pay. To make sure everyone gets a share, spread out your money distribution. Making payments, even just minimum ones, will prevent your debts from going into collection.
Whenever you apply for and open a new credit account, your credit score may drop. Fight the overwhelming urge to say yes to a new credit card when it is offered to you at store checkouts, even if there is a large discount offered. As soon as you open your new credit card, your credit score will drop.
You should make an effort to pay off past due accounts and accounts that have gone to collection. While these items will still appear on your report, you will no longer be penalized by having so much unpaid debt.
If you are having trouble making monthly payments, contact your creditors to see if you can work out a payment option. If you contact the creditors, sometimes they will offer you a repayment plan which isn’t reported to the credit bureaus. This may also alleviate some financial stress and allow you to work on paying off any debt accounts where you are not allowed to make a repayment plan.
These tips will make a big difference in your fight against bad credit. A good credit score is essential to financial freedom, take the time to learn about fixing your credit.
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