Is your low credit score holding you back? In these depressed economic times, a lot of folks are watching their credit ratings sink. Use some basic credit improvement tips to bring your score up.
Fha Loans
If your credit is not perfect, getting a mortgage can be tricky. If you are in this situation you should look into FHA loans before speaking with a bank. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Once you have your credit score higher, you will be able to finance a house. Paying mortgage notes on time will keep your credit scores high. When you own your own home it shows that you have assets and financial stability. These benefits will pay off if you need to secure a loan.
Interest Rates
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. There are laws that protect you from creditors that charge exorbitant interest rates. Remember that you agreed to pay that interest when you signed the contract. If you want to sue creditors, you need to state your claim that the interest rates are too high.
Any company or credit counselor that claims they can erase all negative reports from your credit history should be viewed with some skepticism. Sadly, harmful entries remain on your report for roughly seven years. But, you should remain mindful of the fact that errors can be deleted from your report.
Credit repair requires that you begin paying your bills. You need to pay your bills off on time; this is very important. You will notice how quickly your credit score increases when you start paying off those overdue bills.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Credit Counselor
Before you hire a credit counselor, make sure that you have done your research. Some credit counselors offer real help while others have more dubious things in mind. 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.
Stay cautious and aware of scams online that can lead you to even bigger problems. There are scams all over the web that teach you how to create a new credit file. Needless to say, this is against the law and you are likely to get caught. Legal ramifications can cost a lot, and you may go to jail.
Before agreeing on settling a debt, find out how if the process will raise or lower your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Debt settlers are more interested in their money than your credit rating.
The first step in repairing your credit involves a thorough and careful check to ensure your credit report doesn’t contain erroneous information. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.
Credit Unions
Credit unions are an option for those who have run out of options. Due to their focus on community finances rather than national ones, credit unions may provide better interest rates and more credit services than typical banks.
If you notice credit reporting errors, always file a dispute. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
This is one of the quickest way to create and maintain a credible financial record. Each time you make your payment late it will go against you.
It is understandable if you are frustrated about your credit score. Use these tips to change all that. This advice can make all the difference between having a bad or good credit score.
