Many people fall victim to the consumer driven society we live in and spend more than they could pay off at the interest rates offered by credit card companies. You can turn things positive on your credit report by starting with these steps.
If you don’t have very good credit, financing your home may not be easy. 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. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
Credit Counselor
Make sure you do your research before deciding to go with a particular credit counselor. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. There are many scams out there. If you’re smart, you’ll make sure the credit counselor is not a phony first.
Be very wary of programs that do not sound legal; chances are they aren’t. There are scams all over the web that teach you how to create a new credit file. This is illegal and you will most certainly get caught. The legal costs can cripple you, and there is a very good chance you will be sent to jail.
Contact your creditors to request a reduction in your credit line. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Joining a credit union is beneficial if you want to make your credit score better but cannot get new credit. These credit unions can probably give you better credit options in the long run.
Dispute any errors that are on your credit report so they are removed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Sending your letter by certified mail provides you with proof that the letter was received.
You cannot live a life that is beyond your means. You will have to change your thought patterns in order to get your debt under control. Easy access to credit makes it simple for many people to buy expensive items that they do not have the money for, and a lot of individuals are dealing with the consequences of those purchases. Take a deep look at your finances, and determine what you can realistically afford to spend.
Take the time to ensure each month’s credit card bill is correct. If there are, you will need to contact the company immediately to avoid them reporting this to a credit reporting agency,
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. After you have paid off your debt, send proof of this to the major credit agencies.
Pay the balances on all credit cards as soon as you can to start the credit repair process. Pay off accounts with the highest interest rates first. It is your job to turn it around and prove your responsible with credit.
Go through all the statements you receive. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. It is only your responsibility to make sure everything is correct and error free.
Look for a credit score improvement company that has good reviews online and is legitimate. The credit restoration business has a lot of unfair and shady companies. It is sad to see how many people have been taken advantage of by credit improvement scams. Read all the reviews that you can find and you should be able to make a decision about who you can trust.
Collection Agency
Having to deal with a collection agency can be extremely stressful. You can submit a cease and desist statement to a creditor to stop harassment. A letter like this may stop a collection agency from harassing you, but you are still on the hook to pay your debts.
Having a lot of debts that you cannot pay is part of having bad credit sometimes. Try to make sure that you find a little bit of money in your budget for all the creditors you owe payments to. Even if all you’re making is minimum payments, this will keep you out of collections.
Addressing a bad credit report might seem daunting at first, but if you learn the tricks and stick to the process, you can improve your credit dramatically. The advice offered in this article can help to get you back on track to repairing your credit.
