Has your bad credit score prevented you from getting the things you want in life? This economy has caused an unprecedented epidemic of bad credit. Fortunately, there are many things you can do to help improve your credit again, and your first step is as easy as reading this article.
Getting money for a home loan can be difficult, particularly when your credit is less than perfect. 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. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. A new credit card, used responsibly, will help repair your credit rating.
By keeping your credit score low, you can cut back on your interest rate. Lower interest rates make paying bills easier, and prevents you from incurring debt. Getting better interest rates leads to an easily maintainable good credit score.
If you make a decent income, consider an installment account when you want to give your credit score a boost. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. Paying on time and maintaining a balance will help improve your credit score.
When you’re looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. However, information that is not correct can be removed.
Though it is an unsettling prospect, consider asking your credit card provider to reduce the amount of credit extended to you. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
You should look over all negative reports thoroughly when attempting to fix your credit. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
If you find any errors on your credit reports, dispute them. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
Too many credit cards is a common cause of financial strain, so close all of your accounts aside from one. You may be able to transfer balances to your remaining account. You can pay down one credit card in full, rather than chipping away at many.
Look through your credit card statement each month and make sure that it is correct. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
Paying your credit cards on time keeps you in good standing on your credit report. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.
Make sure that you always read your credit card statement entirely. Take a second look to make sure that you are being charged only for what you actually purchased. You are the only person that is responsible for making sure the statements are error free.
If you feel frustrated over your credit score and discouraged about your finances, read on and use these tips to help you recover. These tips are a parachute for your plummeting credit score.