With the current state of the country’s economic status, it is no big surprise that there are so many people that are facing negative credit scores. These tips can help you gain insight on how you can get a better credit score.
Having poor credit makes financing a home a nightmare. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
When you’re looking to fix your credit, be cautious of credit improvement companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. It is possible to have erroneous information removed from your report, however.
It is essential to pay all of your bills if you are looking to repair your credit. More importantly, you need to start paying your bills in full and on time. Once you have started to pay towards your past-due accounts, you credit score will gradually improve.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Talk to the company and see if you can change your due date or monthly fees.
Don’t get involved in anything that could get you arrested. There are many different places that claim they can help you get a new credit profile. It’s illegal to do this and you can get caught easily. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Sending your letter by certified mail provides you with proof that the letter was received.
If you are currently spending more than you earn, you need to quit that immediately. If you’ve been living outside your means, then get ready for a reality check. Unfortunately, credit has been easier to get than ever. Many people are buying things that are unaffordable and end up paying more than they should for any item. Be honest with yourself about what you can truly afford.
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. Then, try to arrange payments or transfer your balances to the one account you left open. It is much easier to manage one large monthly payment than it is to keep track of multiple smaller ones.
Always examine your monthly credit card bill to make sure everything is accurate. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Filing for bankruptcy is a bad idea. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. It may sound like a good idea at the time to rid yourself of all your debt, but it will affect you later on. Most lenders will be hesitant to work with you in the future when a bankruptcy shows on your credit report.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. 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. You are the only person that is responsible for making sure the statements are error free.
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. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Credit Score
If you go with a repair company to improve your credit score, be sure it is legitimate. There are plenty of credit score improvement agencies that don’t follow through with their promises. There are numerous people that have been the victims of credit restoration scams. See if the company in question has a reputation on any of the user review sites before you commence business with them.
Do not assume that a lawyer is being honest when he or she claims that they can fix your credit instantly. A lot of people are having difficulty with their credit, and there are lawyers that try to exploit these people with illegal and ineffective credit restoration services. Make sure any credit score repair service you consider has a positive standing with the BBB.
Repairing your credit isn’t something you can do overnight, but the best way to fix it is to slowly raise it back up. Prepaid credit cards help you re-establish credit without the risk of falling into an even deeper hole due to delinquent payments. You want to demonstrate your credit worthiness and responsibility to potential lenders.
Now that you know how to improve your credit score, why wait? Be proactive and use the valuable tips you gained from this article, in order to boost your credit scores and, ultimately, increase your quality of life.
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