Is your credit score so low it is hindering your life? These great tips will get you on the right track to repair your credit and not have to worry anymore about what the future holds.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. FHA loans are good options in these circumstances, because the federal government guarantees them. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
Secured Credit Card
A secured credit card might be a good option for the person with a poor credit score. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. If you use it correctly, a new card can help you fix your credit.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. 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.
Interest Rates
You can get better interest rates on credit cards and loans when you have a good credit score. Lower interest rates make paying bills easier, and prevents you from incurring debt. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.
Avoid paying off high interest rates so that you don’t pay too much. The incredibly high interest rates can get challenged and reduced in some situations. You did sign a contract saying that you would pay off the debt. You need to be able to prove the interest rates are too high if you want to sue your lenders.
Credit Counselor
Before you hire a credit counselor, make sure that you have done your research. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Some credit services are nothing more than fly-by-night scams. You should research any counseling service you are considering prior to initiating communications with them.
If you are trying to repair your credit, check all of your negative reports very carefully. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
If you come across a mistake on your credit report, don’t hesitate to dispute it. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
Do not spend beyond your means any longer. If you’ve been living outside your means, then get ready for a reality check. For a while, the easy availability of credit encouraged people to buy more than they could afford. We now must pay for that. Spend some significant time studying your finances, and set a realistic budget to which you can stick.
When you get your monthly credit card bill, check it over to see if there are any mistakes. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Credit Card
It is important to read all credit card statements you receive. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. You are responsible for the accuracy of information on your credit card statments.
Lowering the balances on revolving accounts can help you to get a better credit score. You can improve your score by lowering your balances. When balances are and increments of twenty percent of your total available balance on that account, the FICO system will take note.
Collection Agencies
One of the most nerve-racking aspects of being in debt, and having bad credit, is dealing with 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. These letters stop collection agencies that harassing debtors, but they don’t erase liability for the debt itself.
Now you know your credit report does not have to be a nightmare for you. You can repair your credit and be less intimidated by it. Your credit report can be improved by following the common sense advice in the article above.
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