Does your credit rating give you nightmares? The sound advice above will help you repair your credit and be proud that you are financially responsible again.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. Some FHA loans even cover a down payment or your closing costs.
The first thing you need to do before beginning to repair your credit is outline th steps required to do so, then follow those steps without deviation. You must be dedicated to making some significant changes in the way you spend your money. Only buy what you absolutely need. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
By maintaining a good credit score, you can decrease your interest rate. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Make sure to use a company that gives you the best rates so your bill isn’t being built up by money you haven’t even spent.
Installment Account
If you want to boost your credit score and earn a decent living, open an installment account. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. Keeping an installment account will help your credit score.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. Negative entries that are otherwise accurate will stay on your credit report for a minimum of seven years. Be aware, however, that incorrect information can indeed be erased from your record.
Make sure to have as low as possible of a credit line available to you. 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.
If credit restoration is something you have been considering, the first step would be to pay down your credit card balances. You should first work on paying down the credit cards with the highest balance or interest rates. This will show responsibility to creditors.
Credit Card
Make sure that you always read your credit card statement entirely. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
For a better credit rating, lower the balances on your revolving accounts. You could increase your credit score just by paying down some balances. The FICO system has a new level for every twenty percentage points of your credit available.
There are many credit score improvement agencies advertised; you must check with places like the Better Business Bureau to make sure that you deal with a reputable one. There are a lot of credit improvement agencies that you will want to avoid. Slimy operators are quite common, so beware of credit score improvement scams. 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.
When lenders examine your personal credit history, they will not consider any statements you have made about the negative marks. The statement will only draw further attention to negative reports on your credit history.
Collection Agencies
When you are having trouble paying your bills, debt collection agencies will start contacting you demanding payment. 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. Remember, even when the debt collectors stop annoying you by phone, your obligation to pay what you owe is not alleviated.
As you can see, your credit report no longer has to play the lead role in your worst nightmares. You do have the ability to fix your credit. You can greatly improve your your credit report if you adhere to the tips within this article.