Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. If you’re one of the many people with credit problems, read on for some ways to improve your situation.
If you don’t have very good credit, financing your home may not be easy. Look into alternative financing options like FHA loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
By maintaining a good credit score, you can decrease your interest rate. Monthly payments are easier this way, and you can pay off your unpaid debt. Paying your outstanding balances on time is the best way to keep your credit in check, and to obtain lower interest rates.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. An installment account requires a monthly payment, make sure you can afford it. Handling an installment account correctly will help you improve your credit score in a short period of time.
When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. Unfortunately, negative marks will stay on your record for seven years. You can erase information that is incorrect from your credit record.
If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. They have opportunities that other banks can’t match since they are local, and don’t have to follow some of the same regulations.
It will be easier to increase your credit rating if you only have one open credit card account. Try to make a payment or transfer your balance to your open credit account. You will be able to pay one bill instead of a plethora of small ones.
Make sure to review your credit card statement monthly to make sure there are no errors. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
Try not to file for bankruptcy. The fact that you filed for bankruptcy is noted in your credit report and will stay there for 10 years. It may sound like a good idea at the time to rid yourself of all your debt, but it will affect you later on. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
To even begin improving your credit you will need to lower the balance owed on them as soon as possible. It is a toss up as far as which cards are best to pay off first – some choose ones with the highest interest rate, others choose the card with the lowest balance. This helps creditors realize that you are using credit cards wisely.
It is obviously somewhat difficult to let derogatory marks stand undefended, but the evidence suggests most lenders don’t use those statements in determining creditworthiness. It might actually make things worse by making the negative mark stand out.
Try to use credit cards only for purchases you can afford to pay off. Try to use cash when purchasing. If you must use your credit card, pay it back in full.
The worst part of a credit crisis may be the collection agencies. Consumers can try to use a cease and desist letter if an agency is harassing them, but their usefulness is limited. While such letters stop collection agencies from calling, the consumer is still obligated to pay the debts being disputed.
When you need to repair your credit score, be wary of lawyers and law offices that advertise instant credit fixes. Due to the huge amount of people with credit problems, lawyers have emerged and offer to repair credit for a huge fee, and most of the “repair” is illegal or useless. Investigate a lawyer before hiring them to help you in repairing your credit.
It’s especially painful to have a lot of different debts that you can’t pay all at once. Try to divide all your available money between your creditors, so you can pay everyone at least something. Even if you can barely meet the minimum payments, every bit that you send can help keep your creditors happy, making them less likely to contact debt collectors.
Addressing a bad credit report might seem daunting at first, but if you learn the tricks and stick to the process, you can improve your credit dramatically. Put the information you just learned into practice and start repairing your credit today.