Bad credit can add salt to an economic wound. It is possible that you have had bad experiences throughout your life that have left you with a poor credit rating. Fortunately, you can move on with your life and fix your credit by applying the following advice.
Financing a new home can be a challenge, especially if you have a history of bad 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. If you do not have a down payment or money for closing, consider a FHA loan
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. A new credit card, used responsibly, will help repair your credit rating.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. However, you have entered into a legal agreement that requires you to pay accrued interest. If you plan on suing your creditors, you may be capable of having the interest rates viewed as being too high.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. This will assure them that you want to handle your debt and keep you from getting even further behind. You can even ask for help, such as pushing back the due date of your monthly payments or reducing the interest rate.
Before consulting a credit counseling agency, be sure to check out their background and history. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Others are outright scams. If you’re smart, you’ll make sure the credit counselor is not a phony first.
Try joining a credit union to begin a credit score. With help from a credit union you might get better rates than at another bank, since credit unions better understand the current area compared to the national situation.
If you find any errors on your credit report, you should dispute them. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
Do not spend beyond your means any longer. You you need to rewire your thought process. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! It is important to look closely at your finances and see what you can actually afford and what you can not.
You should look at your credit card bill every month to make sure it is correct. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.
Begin the process of credit score improvement by trying to pay down your credit card balances as fast as you can. Work on paying off credit cards that have the highest interest rates or high balances. This can prove to creditors that you are serious about paying down your debt.
When you have poor credit, you can feel badly about your financial life and think that it will never get better. These suggestions can help you get on track with fixing your credit.