Knowing what you owed and to whom it was owed may have prevented you from incurring the debt in the first place. But now it is time to go into damage control mode and repair your credit. Follow this advice to improve your credit score quickly.
If you don’t have very good credit, financing your home may not be easy. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You have to stay focused and committed if you want to make concrete changes to your financial situation. Be sure to buy only the things that you need. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
Avoid paying off high interest rates so that you don’t pay too much. The incredibly high interest rates can get challenged and reduced in some situations. However, you agreed to pay the interests off when you signed the contract. If you want to sue creditors, you need to state your claim that the interest rates are too high.
If credit improvement is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Negative info stays on your history for seven years! It is possible to have erroneous information removed from your report, however.
Start paying on bills to help your credit. Pay these bills on time, and make sure you pay the full amounts owed. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Avoid collection to improve your credit score. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Give your credit card company a call and ask them to lower your credit limit. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
Credit unions are an option for those who have run out of options. Credit unions may be able to offer more credit options or better rates than a larger bank, based on an understanding of the local area rather than the national situation.
It is crucial that you review credit card bills on a monthly basis to check for errors. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
Paying your credit cards on time keeps you in good standing on your credit report. Paying late is placed on your credit report which can hurt your chances of getting a loan.
To accomplish getting a better rating on your credit, pay down the balances of your current accounts. You can up your credit rating just by paying down your balances. FICO will base your score on what percent of your available balance is in use, so keep that in mind.
Do not use your credit cards. Using cash will ensure that you stick to your budget and don’t overspend. When you do use a credit card, pay off the balance in full each month.
As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. Use the simple information from this article and you should have no trouble fixing your credit score.