Having bad credit can be stressful and annoying. It’s one of the main stumbling blocks to a successful life. It can rob you of your financial options and prevent you from taking advantage of great opportunities. Here are a few easy tips on how you can fix your credit and make sure it stays positive in the future.
Financing a home is not always an easy task, especially when you have less than perfect credit. You should consider getting a FHA loan they are backed by the government. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
If you have a poor credit history and can’t qualify for a credit card, get a secured card. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts. This is why secured cards are often easier to get. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.
Legitimate negative credit problems can not be easily wiped away from your credit rating, so be wary of companies that promise they can do so. If the information is correct, it will remain as part of your report, in most cases, for seven years. It is possible to have erroneous information removed from your report, however.
Credit Card
Working closely with the credit card companies can ensure proper credit restoration. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. The creditor does not care what happens to your credit score, as long as they get their money.
Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. Credit unions often offer better interest and more options than chain banks do.
Though it is hard to make this step, consider paring down the number of credit lines to just one; this will sometimes improve your credit score. Try to make a payment or transfer your balance to your open credit account. You can pay down one credit card in full, rather than chipping away at many.
Look through your credit card statement each month and make sure that it is correct. If there are, you will need to contact the company immediately to avoid them reporting this to a credit reporting agency,
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. If the creditor tries to change the agreement or if it the company is sold to someone else, you will have documentation to support your case. After you have paid your debt, request appropriate documentation that confirms your zero balance.
Filing Bankruptcy
Bankruptcy should only be viewed as a last resort option. Filing bankruptcy negative effects your credit score for 10 years. You may think that bankruptcy is your only option to rid yourself from debt, however look at your long term financial goals before deciding to file for it. Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.
Work with a credible credit improvement service. The credit score repair business has a lot of unfair and shady companies. Lots of people have been taken in by credit score repair schemes. One way to separate the wheat from the chaff is to check user reviews online.
Avoid using those credit cards. Pay for everything with cold, hard cash. If you are forced to use credit, pay it back immediately.
When attempting to fix your credit score, exercise caution when it comes to attorneys and legal teams that advertise instant repair of credit. Because of the surge of credit issues out there, a lot of unscrupulous lawyers advertise that they can repair your credit for large fees. Check up on the track record of any lawyer whose credit advice you intend to seek.
If you need to rebuild your credit, you need to start establishing a history of responsible borrowing. Prepaid or secured credit cards can help to rebuild your score without late payments or going over your limit. Potential lenders will see that you are working towards becoming more responsible with your credit.
Credit Score
Use these and other tips to improve and maintain a credit score. Having a good credit score is crucial to getting the best interest rates possible and is definitely worth the effort.
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