If you have a mistake in your credit report, you can have a low score and it could be difficult to get someone to give you credit. Taking your poor credit situation into your own hands and doing something to make it better is generally considered best for getting you back on your feet again. This article contains the tips you need to repair your credit.
Financing a home is not always an easy task, especially when you have less than perfect credit. 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. FHA loans can even work when someone lacks the funds for down payment or closing costs.
Opening an installment account can give quite a boost to your credit score. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. You can quickly improve your score by successfully managing these accounts.
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. Many others are nothing more than scams. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
If you come across a mistake on your credit report, don’t hesitate to dispute it. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Ask for a return receipt so that you can prove that the agency got your package.
Credit Card
As part of your credit score improvement process, it is a good idea to terminate all of your credit cards except one. Transfer credit card balances to one card for loan consolidation. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Avoid filing for bankruptcy. Doing so will reflect upon your credit score and report for 10 years. It may seem like the right things to do, but your future will be affected. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
Credit Cards
To even begin improving your credit you will need to lower the balance owed on them as soon as possible. Pay down credit cards that have the highest amount owed, or the highest interest rates. This shows creditors you are responsible about your credit cards.
Go through all the statements you receive. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. You are the only person that is responsible for making sure the statements are error free.
Credit Accounts
Lower the debt on revolving credit accounts, like store and credit cards, first. Simply lowering the balances on your open credit accounts can give quite a boost to your credit scores. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
If you go with a repair company to improve your credit score, be sure it is legitimate. Like any industry making claims to help others with their finances, scoundrels and incompetents are usually only discovered after you have lost money, so do your research up front. Some people have turned over all of their financial information to people who turned out to be scam artists, and they wound up in worse shape than before they started. See if the company in question has a reputation on any of the user review sites before you commence business with them.
As you can see, you have many options when it comes to repairing your credit. By following the suggestions contained in this article, an improvement in your credit score should not be too far away. You can fix your credit by yourself, and you will win in the long run.