Having bad credit can sometimes cause you to feel like you are a victim of circumstances. If you’ve recently gone through some hard times, a bad credit score is just an ugly reminder of that experience. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
If your credit is not perfect, getting a mortgage can be tricky. If possible, apply for an FHA loan; these loans are backed by the United States government. FHA loans can even work when someone lacks the funds for down payment or closing costs.
Credit Cards
If you have credit cards with balances that are greater than fifty percent of the maximum, you should pay those down as quickly as possible. It’s best to keep all of your credit cards below the fifty percent mark! 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.
You must pay your bills consistently if you want to repair your credit. You must pay them on time and in full. Your credit score will increase if you are consistently paying back your debts.
When you are trying to clear up your credit contact your credit companies. This will keep you from increasing the amount of debt that you have. This can be accomplished by negotiating with them for a change in due date or monthly charges.
Credit Counselor
Before you choose a credit counseling agency, find out more about them. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Many others are nothing more than scams. If you’re smart, you’ll make sure the credit counselor is not a phony first.
Don’t get involved in anything that could get you arrested. You should steer clear of internet programs that show you how to clear your credit. Doing this is illegal, and you will be caught. The legal consequences are expensive, and you might be sentenced to jail.
Give your credit card company a call and ask them to lower your credit limit. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
Credit Report
When looking over your credit report, look closely at the negative report that are listed. Even if the negative credit item itself is not erroneous, if any of the data pertaining to it is, then you may be possible to have it removed from your credit report.
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. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
Comb through all of the bills that you get! Ensure that all of the listed charges are purchases that you made, keeping an eye out for fraudulent charges. You bear the responsibility for looking after your own best interests, and you are the only person who will know if your statement is accurate.
For a better credit rating, lower the balances on your revolving accounts. Reducing the amount of debt you’re carrying is one of the best ways to improve your credit score. The FICO system makes a note when your balances are at 20, 40, 60, 80, and 100 percent of your available credit.
Make sure the credit improvement agency is reputable. Too many of these services will use your desperation to make money. There are many people who have been the victim of a credit repair scam. Read reviews online to help you choose the right agency for you.
lenders will not read these statements when looking at your credit report. If anything, it will just hurt you as it will draw attention to the negative event.
Credit Card
Credit card usage should be eliminated. Use cash for purchases instead while you are building back your credit. Pay off any credit card purchases immediately.
Part of a nasty credit crunch is having multiple debts that you do not have the money to pay. Take the money you have set aside for debt payments, and divide it up into portions for each debtor. Even a minimal payment can satisfy your creditors and keep your accounts from landing in collections.
Put together a plan to pay off the collection account and past due accounts. Although it will appear on credit reports, they will be paid.
Although it’s easy to feel like you can never recover from bad credit, it is possible to do so. Following these tips to improve your credit score will help you take charge and have a more positive attitude.
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