Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. You can reverse the effects of these actions though.
An imperfect credit rating can make financing a home even more difficult than normal. If possible, apply for an FHA loan; these loans are backed by the United States government. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
Credit Card
If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you use a credit card well, your credit rating will begin rising.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
You can dispute inflated interest rates if you are being charged more than you should be. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did however sign a contract that agrees you will pay off all interests as well as the debt. Your interest rates should be regarded as too high if you plan on suing your creditors.
Credit Report
If credit score repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. This information can stay on your record for about seven years. You should know that mistakes and anything incorrect can be removed from your credit report.
In order to start repairing your credit, you need to start paying your bills. More importantly, you need to start paying your bills in full and on time. You will immediately see changes in your credit score when you begin to pay off your debts, especially those that are active.
Credit unions are an option for those who have run out of options. Credit unions are normally located in communities and offer lower interest rates than national banks.
Anything on your credit report that you feel is inaccurate should be disputed. Contact the credit agency in writing, with documentation to support the errors that you are disputing. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Filing for bankruptcy is a bad idea. Filing bankruptcy negative effects your credit score for 10 years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
Interest Rate
To even begin improving your credit you will need to lower the balance owed on them as soon as possible. Sort your credit cards by balance and interest rate with the highest first. Then determine which credit card is the highest either in balance or interest rate and start to pay it off first. This builds the positive credit history that creditors like to see.
Take the time to carefully go over all your credit card statements. Take a second look to make sure that you are being charged only for what you actually purchased. You are the only one that can verify if everything on there is the way it should be.
If you are trying to fix your credit, be aware of lawyers who claim to instantly fix your credit. Less ethical lawyers have realized that with the current glut of consumers with credit trouble, there is money to be made by charging high fees for ineffective credit improvement help. Check the reviews and reputation of any lawyer or credit score improvement firm thoroughly before you contact them and certainly before you give them any money.
A nasty credit crunch can generally be caused by lacking the funds to pay off multiple debts. To make sure everyone gets a share, spread out your money distribution. This will keep your account in good standing while you are paying down your debt.
Credit Card
Do not open more lines of credit that you can afford. Fight the temptation to get that credit card at the checkout when they offer you big discounts if you do it. Credit scores are adversely affected by opening a store credit card, because of their high interest rates.
When monthly payments are about to overwhelm you, talk directly to the people to whom you owe money and make alternate arrangements. If you contact the creditors, sometimes they will offer you a repayment plan which isn’t reported to the credit bureaus. This can also help to relieve some of the financial strain that you have been facing.
Investigate debt consolidation and see if it’s an option that can help you repair your credit. Consolidation could be your best shot for trying to reduce debt, therefore fixing your credit quicker. Your debts are combined into one which allows you to make one easy monthly payment. Find out more about consolidation and how it could be applied to your situation.
If you are determined and ready to learn, you can fix your credit in no time. Use what you have read here to get back on track with your credit.
This is a limited-time offer. We are not able to guarantee availability if you wait!
