No matter what your current situation, you have probably damaged your credit by opening one too many credit cards or being affected by the economic downturn. You can turn things positive on your credit report by starting with these steps.
If your credit is not perfect, getting a mortgage can be tricky. 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 are a good option regardless of your down payment amount or funds available for closing costs.
Lower Interest Rates
It’s easy to lower your interest rate by ensuring your credit score is high. Lower interest rates make it much easier and quicker to pay off balances. Obtaining lower interest rates will make it easier for you to manage your credit, which in turn will improve your credit rating.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. There are laws that protect you from creditors that charge exorbitant interest rates. However, you agreed to pay the interests off when you signed the contract. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
Before using a credit counselor, it’s important to research them completely. Many may have ulterior motives, so make sure you are not being duped. There are a lot of people out there that are trying to take advantage of those who are down on their luck. A savvy consumer will always do his or her research on any credit counseling service to ensure that the agency is legitimate.
Before you decide to go through with a debt settlement, you should be sure you know how it will affect your credit. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. Creditors just want their money and really aren’t interested on how it will affect your score.
Stop living beyond your means. This takes time and a change in attitude to accomplish. Many people have acquired debts they can’t pay off, which has affected the amount others will pay to have credit. Be honest with yourself about what you can truly afford.
Credit Card
It will be easier to increase your credit rating if you only have one open credit card account. You can make arrangements to pay the balances, or transfer the balances of your closed credit card accounts to your single remaining credit card. Paying off one main credit card will be easier than paying off several cheaper ones.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. This will protect you should the company change its policies. 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.
Do everything you can to avoid filing bankruptcy. When you file for bankruptcy it shows for 10 years, your credit report will suffer from this. While ridding yourself of most debt may seem ideal, it is not without consequences. It may be impossible for you to get a loan or credit card in the future if you file for bankruptcy.
Make sure to fully read every single credit card statement that you get. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
If you want to fix your credit it can seem like a lot to handle, if you work hard you can do it the right way. Use the information gleaned from this article to fix your credit and improve your life.
