Many people find themselves having to deal with bad credit due to the downturn of the economy, the rise of the cost of living, as well as the increase in layoffs. Luckily, these tricks and tips can show you how to have a better credit score.
Having poor credit makes financing a home a nightmare. If possible, apply for an FHA loan; these loans are backed by the United States government. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
Credit Score
Your low credit score will cut your interest rates. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
Opening an installment account can give quite a boost to your credit score. You are required to meet a monthly minimum, so be sure that you can make the payments. If these accounts are properly managed, they can provide a quick boost to your credit score.
Begin paying your bills to repair your credit. You must pay them on time and in full. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
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. Some credit services are nothing more than fly-by-night scams. Knowledgeable purchasers will always make sure that the credit counselor in question is legitimate before hiring.
Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. You should know all about the methods you can use if you are going to enter into an agreement with someone. Debt settlers are more interested in their money than your credit rating.
If you are doing hardcore credit score repair, you need to scrutinize your report for negative entries. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. Credit unions may be able to offer more credit options or better rates than a larger bank, based on an understanding of the local area rather than the national situation.
The first step in credit repair is to close all but one of your credit accounts as soon as possible. You will want to either transfer your balances onto the one remaining card or set up payment arrangements, but close the account to new charges. You can pay down one credit card in full, rather than chipping away at many.
Credit Card
Make sure to review your credit card statement monthly to make sure there are no errors. If you notice unwarranted fees or surcharges, contact the credit card company to avoid being reported for failure to pay.
Now you know how to repair your credit score, so get started on a plan of action. Use this information to help increase your credit rating.
