Having bad credit can really hold you back from the things that you need in life. Having negative credit limits what you can do and unfortunately, predetermines your future, as well. However, you can take steps towards credit improvement, in which case, more doors will open, instead of close. The tips included in this article a great start down the road to better credit!
Financing homes can be made more difficult when your credit score is low. If you are in this situation you should look into FHA loans before speaking with a bank. FHA loans are great for the individuals that do not have the financial capability to make down payments.
Credit Card
Pay down the balance on any credit card that is 50% or more of the credit limit. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
A good tip is to work with the credit card company when you are in the process of repairing your credit. This will help you stabilize your situation and start working towards a better financial situation. This can be accomplished by negotiating with them for a change in due date or monthly charges.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. There are a lot of people out there that are trying to take advantage of those who are down on their luck. You should always find out if a credit counselor is the real thing.
Debt Settlement
Prior to agreeing to a debt settlement agreement, find out how that process is going to impact 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. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
Take the time to ensure each month’s credit card bill is correct. If there are mistakes, call the company. If the errors are not fixed, they could get reported to the major credit rating agencies.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. This will provide proof of your agreement in case any problems ever arise. Once it is paid off, you should get that in writing to send to the credit reporting agencies.
Avoid filing for bankruptcy. This will show up on your credit for around 10 years. Although it sounds like an easy way to get rid of debt, it will affect your life for a significant amount of time. Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.
Doing so can help to keep good credit. Credit card companies are one of the few businesses that report on a regular basis. Paying late can severely hurt your credit score.
You need to read and understand the credit card statements you receive in the mail. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. If an error occurs, you should immediately notify your creditor.
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. In fact, it could actually make matters worse by bringing to their notice the negative aspects of your report.
Avoid using your credit cards whenever possible. Try to make purchases using cash only. If you are forced to use credit, pay it back immediately.
Collection Agencies
One of the biggest stressors can be bad dealings with debt collection agencies. You can use a cease and desist letter to stop any harassment from collection agencies. You will still have to pay what you owe even if collection agencies stop calling you.
An instant solution to your problems is usually too good to be true, especially when that solution is some kind of “magic” debt relief being offered by a lawyer. The state of the economy has caused many lawyers to practice unethical methods by promising credit improvement for a steep fee and not delivering. Make sure any credit improvement service you consider has a positive standing with the BBB.
It is illegal for companies to threaten you during collections. Take a written account of it to pursue action against them. Even if you are in debt, you still have rights.
If you’re having problems budgeting your money or paying your debts, contact a credit counseling company that has a good reputation. These agencies can negotiate with your creditors in order to come up with an affordable repayment plan; they can also offer valuable advice which can help you to better manage your finances. A credit counselor can give you the best advice on how to be in control of your finances, and pay off your debts.
Provide more opportunities for yourself by taking steps to get a clean credit record. You can fix your credit, free of charge. Make the tips in this article work for you and enjoy your spotless credit.
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