Has bad credit made your life miserable? In a tough economy, most people see their credit score go down. You can turn things around, though. A good start is to check out these tips to repair your credit rating.
For some it may hard to finance their home due to having less than ideal credit. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. If you do not have a down payment or money for closing, consider a FHA loan
Secured Credit Card
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. A new credit card, used responsibly, will help repair your credit rating.
With a good credit score, you can easily buy a house and mortgage it. You will get a better credit score by paying your mortgage payment on time. As a homeowner, you will have a major asset that can have positive effects on your credit profile. This will be very helpful if the time comes where you need to take out a loan.
If you are looking to repair your credit, then you should not believe a company if they promise they can remove negative information from the report. Specifically if this information is correct. All information remains on your credit report for a period of seven years or more. You can, however, succeed at having incorrect information erased from your credit reports.
If you find any errors on your credit reports, dispute them. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Your letter should be sent with a request for return receipt, so you can have a record that it was received by the reporting agency.
Credit Card
In order to start repairing your credit, you should close all but one of your credit card accounts. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. This allows you to pay off one credit card bill rather than many smaller ones.
Try not to file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. This may appear to be a wonderful idea where you rid yourself from all this debt at once, but in actuality it causes more harm than good. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Credit Card Balances
The most obvious way to get your credit improvement journey going is to pay down those pesky credit card balances. First, pay down your credit card balances, starting with the highest interest. This will show future creditors that you take your debts seriously.
It is important to read all credit card statements you receive. You will need to read over every charge on your account to check that it is accurate. You are the person responsible for checking that there are no errors.
Make sure the credit repair agency you are working with is legitimate. The credit restoration industry does have its fair share of agencies that do not live up to their promises. Indeed, some people have fallen prey to credit score improvement scams. Read reviews online to help you choose the right agency for you.
Your credit cards are not doing you any favors; avoid using them. Try to use cash instead for all of your purchases and bills. If a credit card is used for a purchase, pay the entire balance when the bill arrives.
Collection Agencies
One of the most stressful aspects of handling bad credit is dealing with debt collection agencies. You have the option of sending a cease and desist letter to agencies to stop them from calling, but that doesn’t mean that your debt vanishes. You will still have to pay what you owe even if collection agencies stop calling you.
Don’t believe the hype of lawyers or other offices that promise they can immediately fix your credit score. Because so many people are having credit problems, predatory attorneys have appeared who charge exorbitant fees for useless or illegal credit improvement schemes. Get reviews on a lawyer before you go to them for help.
Having a lot of debts that you cannot pay is part of having bad credit sometimes. Split your available funds and make sure that you make payments on each of your debts. Minimum payments will keep your debt accounts in good standing, and will keep them from ending up in collections.
If you felt bad about your credit score, use these strategies to change that. These tips will help your score stop failing and start improving.
This is a limited-time offer. We are not able to guarantee availability if you wait!
