If there are inaccuracies in your credit file, this can give you a poor credit score making it very difficult for any types of loans in the future. Taking some do-it-yourself tips might not offer a quick fix for your credit, but it can be a great way to make those changes which will benefit your long-term financial health. Here are a few ideas for fixing your credit.
If you don’t have very good credit, financing your home may not be easy. If this is the case, try to get an FHA loan, which are loans backed by federal government. Some FHA loans even cover a down payment or your closing costs.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. This card is very easy to get, because you put money into an account ahead of time and then spend from that, so the bank doesn’t have to worry about not getting their money. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Interest Rates
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. You did sign a contract saying that you would pay off the debt. It is likely you can have exorbitant interest rates reduced if you sue the creditor.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. While some counselors are legitimate, offering genuinely helpful services, others have ulterior motives. Some are not legitimate. Before you conduct any business with a credit counselor, check into their legitimacy.
Don’t do anything illegal. There are scams all over the web that teach you how to create a new credit file. Needless to say, this is against the law and you are likely to get caught. You could end up owing a great deal of money or even facing jail time.
Credit Card Companies
Give the credit card companies a call and find out if they will lower your credit limit. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
Make sure you review all of the negative marks against you on your credit report. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.
Dispute any errors that you find on any of your credit reports. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
If you need to repair your credit score, you should pay your credit card balances as fast as possible. Pay off high-interest debt first, as it grows the fastest. This builds the positive credit history that creditors like to see.
Try to use credit cards only for purchases you can afford to pay off. Use cash to pay for things whenever possible. If you absolutely need to use a credit card, be prepared to pay off the balance at the end of the month or as soon as possible.
When attempting to fix your credit score, exercise caution when it comes to attorneys and legal teams that advertise instant repair of credit. The state of the economy has caused many lawyers to practice unethical methods by promising credit repair for a steep fee and not delivering. Investigate any lawyer thoroughly before contacting them for credit assistance.
Build your credit back up if your current credit scores are low. A secured credit card, one that is prepaid, will help you improve your credit score. A potential lender will see this as a responsible move on your part, showing that you are credit worthy.
As this article shows, there are many alternatives that you can use to boost your credit rating and get back on track. If you follow these tips you could see your credit score improve in just a few months. DIY credit restoration takes some discipline, but it can work wonders for your score.
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