Does your credit report smell like rotten eggs, dead fish, and cow manure all mixed together? These tips can help you properly repair your credit so that you can have a top notch credit score.
Fha Loans
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. Federally guaranteed loans (FHA loans) may be an option. Some FHA loans even cover a down payment or your closing costs.
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. In order to get the card, you will have to fund the account as sort of an insurance that shows the bank your debts are going to be paid. Limited spending and regular payments can turn a new credit account into a valuable credit score repair tool.
Make sure that you are never using more than 50% of your credit card’s limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Installment Account
Think about getting an installment account to save money and improve your credit score. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. You will improve your credit score by properly managing an installment account.
To start fixing your credit, you will have to pay your bills. It is key that you pay them on time and in full. Do the best that you can. Your FICO score will begin to increase immediately after you pay the bills that are past due.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. You should contact the company and request a lower interest rate or a due date change if necessary. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Call your credit card companies and request that they lower your limit on your cards. This will keep you living within your budget, and will show the credit companies that you repay debts. This will allow you to get credit easier in the future.
Debt Settlement
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. There are methods that are going to be less damaging than another, and all should be researched before you enter an agreement with a creditor. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
Do not spend more than you can afford. This might be a tough thing to get your head around. Getting credit has never been easier, making it just as easy for people to buy items they simply can’t afford. This, though, comes with a hefty interest price tag. Spend some significant time studying your finances, and set a realistic budget to which you can stick.
Avoid filing for bankruptcy. Doing so will reflect upon your credit score and report for 10 years. While ridding yourself of most debt may seem ideal, it is not without consequences. Bankruptcy destroys your ability to get any sort of loan for at least a few years, so don’t file unless you have to.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. You can raise your score by lowering your balances. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
You may want to argue against the reports, but potential lenders will not take your statements into consideration. The less you can do to attract attention to negative reports, the better.
Avoid using your credit cards at all. Use cash for purchases instead while you are building back your credit. If the purchase you’re buying is more than you can currently afford you can use a credit card, but pay it back as soon as possible.
Now you know your credit report does not have to be a nightmare for you. Repairing your credit isn’t that difficult if you have some confidence in doing it. By the time you finish applying these tips, your credit score will be on its way up.