Developing a low credit score is easy to do, but difficult to remedy, leading to financial barriers that are hard to surmount. Bad credit makes it difficult to take advantage of any financial opportunities that arise. Here are a few steps you can take to restore and protect your credit score.
An imperfect credit rating can make financing a home even more difficult than normal. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. Some FHA loans even cover a down payment or your closing costs.
Develop a plan that works if you are in need of credit score repair. Making changes to become a wise spender means you have to make a budget and rules, then follow them. Stick to the essentials, and avoid frivolous purchases at all costs. Only buy something if you have to have it and you can afford it.
Credit Card
If you can’t get a normal card due to low credit score, look into a secured card. Secured credit card applications have a high rate of approval because you must fund a security deposit against your credit limit. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
A lower credit score can get you a lower interest rate. Lower interest rates mean lower payments, which allows you to pay off debt faster. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
Begin paying your bills to repair your credit. Paying your bills on time and for the full amount is important. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
When you are trying to clear up your credit contact your credit companies. This will help you stabilize your situation and start working towards a better financial situation. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Credit Counselor
Before you hire a credit counselor, make sure that you have done your research. Although some can be quite legitimate, others have motives that are less than kind. Other counselors are nothing more than scam artists. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. You could find mistakes in dates and other factors which can cause the whole item to be removed from the report.
Anything on your credit report that you feel is inaccurate should be disputed. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Also include a request for a return receipt to make sure the agency gets it.
Do not file for bankruptcy. Bankruptcy does not drop from your credit report until ten years have passed, so you will deal with the fallout for a significant period of time. It may sound like a good idea at the time to rid yourself of all your debt, but it will affect you later on. It may be hard to get a credit card or a loan if you declare bankruptcy.
Credit Card
Take the time to carefully go over your monthly credit card statement. You should make sure that the charges that you get are right, and that you’re not paying for items you did not buy. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
Simple tips like these will help you fix your credit problems and keep your credit healthy. The time you invest learning about ways to repair credit can be fruitful in improving your credit rating.
This is a limited-time offer. We are not able to guarantee availability if you wait!
