You can feel victimized by bad credit. It could have been created by honest errors or life experiences out of your control, but bad credit can really stifle your lifestyle and act as a constant reminder of times you’d like to forget. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
Financing a home is not always an easy task, especially when you have less than perfect credit. Federally guaranteed loans (FHA loans) may be an option. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
Credit Score
It is easy to get a mortgage for a house if your credit score is good. Fulfilling your mortgage obligation in a timely fashion does a great deal of good for your credit rating. Owning your own home also improves your credit score in the form of having large assets to borrow against. Having a good credit score is a key factor if you ever need to take out a loan.
Paying your bills is something you need to do to repair your credit. Pay these bills on time, and make sure you pay the full amounts owed. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. Many may have ulterior motives, so make sure you are not being duped. Some credit services are nothing more than fly-by-night scams. Smart consumers will always check to see that credit counseling agencies are, in fact, legitimate before working with them.
You can contact your creditors and request a lower limit. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Credit Union
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. You may find that the credit union has more options and better rates to offer you than banks will.
Make sure to review your credit card statement monthly to make sure there are no errors. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. If you have finished paying it off, you should request a confirmation so you can send it to the credit reporting agencies.
Lowering the balances on revolving accounts can help you to get a better credit score. You can raise your score by lowering your balances. The FICO system notates when a balance on a card is at 20,40,60,80, and 100 percent of the total available credit.
If you want to repair your credit, take the time to find a reputable repair agency. The industry unfortunately has some agencies that fall short on their credit improvement promises. Indeed, some people have fallen prey to credit score repair scams. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
One of the most nerve-racking aspects of being in debt, and having bad credit, is dealing with collection agencies. Cease and desist correspondences can be legally used by a consumer to put off collection agencies; however they only help stop the harassing phone calls. You may be able to stop the deluge of calls from a collection agency, but the debt must still be dealt with.
You may get into the situation that you have multiple debts and you just don’t have enough money to pay them all. Take out a little money for each one of the creditors that you owe. Minimum payments will keep your debt accounts in good standing, and will keep them from ending up in collections.
When your credit is in disrepair, it is quite easy to throw your hands up and think that things will never improve. The credit score repair tips in this article can get you in a new frame of mind, and make the first steps to improve your credit.
