Keeping track of who you owe and what you owe can help prevent formation of debt. So now it is time to exercise crisis management and to repair your credit score. Follow this easy advice to get your credit back on track.
Having poor credit makes financing a home a nightmare. Federally guaranteed loans (FHA loans) may be an option. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
If your credit is good, it’s easy to get a mortgage on a new home. Making mortgage payments in a timely manner helps raise your credit score even more. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. If you have to take out a loan, this will help you.
Installment Account
Opening an installment account is one way to improve your credit score. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. You can improve your credit rating quicker using this type of account.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. Negative credit information remains on your record for up to seven years. Incorrect information may be erased though.
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 start paying your past bills off, you will notice an immediate improvement in your credit.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Credit unions can often offer better rates and more alternatives than larger banks, because they base their decisions on the local economy instead of the national situation.
If you see errors on your credit reports, dispute them with the credit agency. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. 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.
Start living within your means. If you’ve been living outside your means, then get ready for a reality check. In many cases, people are using credit cards to buy things they want, rather than focusing on things that they need. Spend some significant time studying your finances, and set a realistic budget to which you can stick.
Do everything possible to avoid bankruptcy. It is noted on someone’s credit report for 10 years. 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. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
Attempts to defend negligence or bad credit will not succeed, even if they are justifiable. The creditors are only worried about results and numbers. Inclusion of the defending statement could actually have the opposite effect as it brings more attention to the fact that you have a negative mark on your report.
Put your credit cards on lock down and don’t use them at all, if possible. Purchase with cash. If you have to make a purchase with your card, pay it off right away.
When you need to repair your credit score, be wary of lawyers and law offices that advertise instant credit fixes. Because so many people these days suffer from credit problems, attorneys and scam artists have come up with ways to charge a high price for repair schemes that can be illegal and useless. Before you give a lawyer any money or any personal information, make sure to do a thorough check on them and their practice to make sure they are legitimate.
Repairing your credit rating and cutting down your debt involves a lot more common sense than anything else. You can easily achieve your goal by using these tips.
