You might have gotten sucked in by Capital One’s pre-approved credit offers, or maybe you got into some medical debt. In any of these cases, you likely hurt your credit at least a little. The good news is that there are some things that you can do to repair it.
Having poor credit makes financing a home a nightmare. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.
You will be able to buy a house and finance it if you maintain a good credit rating. Making your mortgage payment on time each month will also boost your credit score. Owning a home gives you secure financial assets. Having a good credit score is a key factor if you ever need to take out a loan.
You need to work with the companies from whom you have credit cards. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Be wary of credit repair scams that can get you in legal trouble. Scams abound on the internet that show you how to change your credit file. You will be prosecuted, it is against the law. The legal proceedings will be costly, and you may even be sent to jail.
Credit Card
It will be easier to increase your credit rating if you only have one open credit card account. Make the minimum payment each month on your other accounts, but make the largest payment possible to the one account you are focusing on. Paying off one main credit card will be easier than paying off several cheaper ones.
It is crucial that you review credit card bills on a monthly basis to check for errors. If there are late fees, you have to make sure that you take care of them immediately with the company so that they don’t send that information to the credit bureaus.
Pay the balances on all credit cards as soon as you can to start the credit restoration process. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. This will show creditors that you are responsible with the cards.
This is the first step toward having an A+ credit rating. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
Credit Card Statements
It is important to read all credit card statements you receive. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
For a better credit rating, lower the balances on your revolving accounts. Maintaining smaller balances can improve your credit rating. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.
Make sure that the credit restoration agency you choose to work with is reputable. There are lots of disreputable credit repair agencies out there. Many people fall victim to these scams every day. Read reviews online to help you choose the right agency for you.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Do all of your spending with cash or debit cards. If you do pull out the credit card, pay off the debt in full each month.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. With the advice you were given in the above article, you can get to work on improving your credit score today.
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