Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. The good news is that there are some things that you can do to repair it.
Financing homes can be made more difficult when your credit score is low. 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 even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
You can keep your interest rates lower by working to keep your credit score as high as possible. Lower interest rates mean lower payments, which allows you to pay off debt faster. Paying your outstanding balances on time is the best way to keep your credit in check, and to obtain lower interest rates.
You can get a house mortgaged at the snap of a finger if you have a high credit score. Fulfilling your mortgage obligation in a timely fashion does a great deal of good for your credit rating. When you own your own home it shows that you have assets and financial stability. This will be very helpful if the time comes where you need to take out a loan.
When you’re looking to fix your credit, be cautious of credit score improvement companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. If the information is correct, it will remain as part of your report, in most cases, for seven years. However, information that is not correct can be removed.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. Although some can be quite legitimate, others have motives that are less than kind. Some are just people trying to scam you. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
If you are trying to improve your credit score but are having difficulty gaining access to new credit in order to do so, join a credit union. 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 are able to negotiate a repayment plan with your creditor, be sure to get it in writing. If there is a change of heart, this paper will protect you. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Try not to file for bankruptcy. This will reflect on your credit report for the next 10 years. Though the idea of ridding yourself of debt can sound appealing, the long term consequences just aren’t worth it. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
The most obvious way to get your credit restoration journey going is to pay down those pesky credit card balances. Work on paying off credit cards that have the highest interest rates or high balances. This will show future creditors that you take your debts seriously.
lenders will not read these statements when looking at your credit report. If anything, it will just hurt you as it will draw attention to the negative event.
When you need to repair your credit score, be wary of lawyers and law offices that advertise instant credit fixes. Predatory lawyers have begun to prey on people with credit problems; they charge outrageous fees to repair credit. Do a thorough background check on any lawyer advertising credit repair services before handing over any money.
Repair your credit by building it up again. Using a prepaid credit card will help to build your credit score, without the worry of late payments, and bad marks on your credit report. Potential lenders will see this as a positive thing as it will show you are a responsible person.
Your credit rating will also suffer from opening new lines of credit. It may be tempting to get a new account when there are bonuses offered at the check out, but you should stop and think about it first. Credit scores are adversely affected by opening a store credit card, because of their high interest rates.
Seek advice from a trustworthy credit counseling service if you are having difficulty managing your debt. Many times, these agencies will negotiate with creditors to rework your debts into a manageable repayment plan so you can make progress on getting your finances back on track. Credit counseling services can help you get a handle on your money, and help you meet your financial goals.
If you are unable to make your monthly payments, let your creditors know, and try to work out a suitable payment plan with them. If you respect them by giving them a notice that you are having difficulty, it is more likely that they will arrange a payment plan with you without reporting you to the credit bureaus. This may also alleviate some financial stress and allow you to work on paying off any debt accounts where you are not allowed to make a repayment plan.
Nursing your credit back to good health is not as hard as it looks at first, especially when you are willing to make a persistent effort and listen to good advice. Use what you have read here to get back on track with your credit.