Try Our Repair Kit For Your Damaged Credit

There are a lot of ways to damage your credit score, from falling for a credit card scam to just being unlucky with the recent economy. If you’re one of the many people with credit problems, read on for some ways to improve your situation.

For some it may hard to finance their home due to having less than ideal credit. FHA loans are good options in these circumstances, because the federal government guarantees them. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.

If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.

Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. You should always make an effort to pay your bills on time and in full. Your FICO score will begin to increase immediately after you pay the bills that are past due.

Before consulting a credit counseling agency, be sure to check out their background and history. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Other programs, while they sound good, are complete and total scams. Consumers should always check to see if a credit counselor is not a scam before deciding to use them.

Credit Score

Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. Some ways of dealing with debt repayment are better for your credit score than others, so make sure you are achieving the best outcome for you before you sign anything. Debt settlers are more interested in their money than your credit rating.

Read your negative reports carefully when attempting to rebuild your credit. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.

Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. Credit unions often offer better interest and more options than chain banks do.

Start living within your means. You you need to rewire your thought process. In many cases, people are using credit cards to buy things they want, rather than focusing on things that they need. Take a hard honest look at your budget, and figure out what you can honestly afford to spend.

Credit Card

Check your credit card statement each month and make sure there aren’t any discrepancies. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.

Get a written copy of any payment plan you negotiate with a creditor. This will give you important documentation in case of an ownership change or if the creditor tries to back out of the agreement. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.

Make sure a credit score repair agency is legitimate before choosing to work with them. There are plenty of credit score improvement agencies that don’t follow through with their promises. Lots of people get taken in by scammers. Reading unbiased customer reviews will help you decide what company you want to work with.

Avoid using your credit cards. Using cash will ensure that you stick to your budget and don’t overspend. If you have a situation where you have to put a charge on your credit card, make a point to pay it off as soon as possible.

Credit Score

Opening too many lines of credit negatively affects your credit score. When you are offered a credit card when checking out at the store, fight the urge to get one to receive the discounts that are offered to you. Your good credit score will suffer a small dip each time you open a new account.

With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. Use the information you have learned here to help get you started on the journey to a better credit score.