There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. Luckily, there are some things you can do to make things better. Here are just a few of the ways you can do that.
For those with imperfect credit, it can be hard to secure financing for a home. Look into alternative financing options like FHA loans. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
Credit Card
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
It’s easy to lower your interest rate by ensuring your credit score is high. A lower interest rate means lower monthly payments, and less time paying off your debt. Asking for a better deal from your debtors can help you get out of debt and back to achieving a better credit score.
Installment Account
Try an installment account to get a better credit score and make some money. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. Keeping an installment account will help your credit score.
Start paying your bills in order to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
You need to work with the companies from whom you have credit cards. Talking to them will help keep you from drowning further in debt and making your credit worse. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Credit Score
Know how debt settlements will influence your credit score prior to making a decision. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. Remember creditors want their money. They really don’t care about your credit scores. That is up to you to protect.
Read your negative reports carefully when attempting to rebuild your credit. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
Don’t spend more than you make. You will have to change the way you think in order to do this correctly. While you may see your peers racking up credit debt, be sure to not fall into the same trap. Instead of spending more than you can afford, take a long hard look at your income and expenses, and decide what you can really afford to spend.
Always examine your monthly credit card bill to make sure everything is accurate. if you find any, then you need to get in touch with the company right away so this does not become a blemish on your credit record.
Avoid using your credit cards. Pay for everything you buy with cash instead. If you have no choice but to use a credit card, always pay the balance in full each month.
Collection Agencies
One of the biggest stressors can be bad dealings with debt collection agencies. Consumers can legally issue letters to collection agencies to cease and desist if they are being harassed. These letters will discourage contact from collection agencies. Although these letters make collection agencies cease contacting people, they are still expected to pay their debts.
In order to rebuild your credit, take baby steps to start improving your score. Consider a card that requires payment in advance; this will improve your score without the risk of failure. Potential lenders will see that you are working towards becoming more responsible with your credit.
Fixing your damaged credit may seem like an overwhelming task in the beginning, but with a bit of work and a bit of guidance, you can turn things around and get your credit back on track. Put the information you just learned into practice and start repairing your credit today.
This is a limited-time offer. We are not able to guarantee availability if you wait!
