The results of a poor credit score are traumatic to deal with. Being affected by decisions you made years ago is extremely frustrating. You can fix your credit, but it might be difficult. Read on for some tips that can help.
Financing a home can be difficult if you have bad credit. Federally guaranteed loans (FHA loans) may be an option. 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.
50 Percent
Keep your credit card balances below 50 percent of your credit limit. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
Try opening an installment account. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. You can quickly improve your score by successfully managing these accounts.
A good tip is to work with the credit card company when you are in the process of repairing your credit. This prevents you from sinking further into debt or further damaging your credit score. See if the company will allow you to modify the monthly due date, or reduce the payments.
Don’t risk prison. You should steer clear of internet programs that show you how to clear your credit. You will be prosecuted, it is against the law. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Give your credit card company a call and ask them to lower your credit limit. Not only will this prevent you from owing more, but it will be reflected in your credit score because it shows that you are responsible with your credit.
Credit Score
Before going into debt settlement, find out how it will affect your credit score. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. The credit companies are looking at their own bottom line and are not concerned with your credit score.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. 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.
Don’t spend more than you make each month. This is nothing short of a lifestyle overhaul. In years past, many people relied on credit cards to make major purchases, but now those risky financial choices are catching up with them. Take a deep look at your finances, and determine what you can realistically afford to spend.
Filing for bankruptcy is a bad idea. This will reflect on your credit report for the next 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Credit Score
You will be able to keep up with your bills, and get a good credit score. Credit card companies are one of the few businesses that report on a regular basis. Paying late can severely hurt your credit score.
Try lowering the balance of any revolving accounts you have. Simply lowering the balances on your open credit accounts can give quite a boost to your credit scores. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
An experienced, honest credit improvement agency can be very helpful. There are lots of disreputable credit improvement agencies out there. Lots of people get taken in by scammers. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
This advice can help you to turn your credit score around. The main key is to commit to your plan of action and not allow your liabilities slip by. Stop worrying and start repairing your credit score now!