Is your credit report so bad that it keeps you up at night? The information and advice found here can set you straight and on the road to the credit report you wish you had.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. FHA loans are good options in these circumstances, because the federal government guarantees them. Even if an individual does not have money for the down payment to purchase real estate or pay closing costs, FHA loans may still work.
You may be able to reduce interest rates by maintaining a favorable credit rating. Monthly payments are easier this way, and you can pay off your unpaid debt. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.
Original Debt
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. However, you signed a contract agreeing to pay off interests. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
It’s vital that you actually begin paying the bills that you have if you want to improve your credit. To help your credit, you should be paying the full amount owed within the time allowed. After you have paid off some old bills, you will see an immediate improvement in your credit rating.
Work with the companies to whom you owe money to get your debt back under control. By keeping the lines of communication open, you will avoid getting into more debt, making your credit score even worse. It is perfectly appropriate to call and request an adjustment to your interest rate or to push back a payment date if needed.
Before using a credit counselor, it’s important to research them completely. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. There are a lot of people out there that are trying to take advantage of those who are down on their luck. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Consider joining a credit union. They offer a lot of benefits to their members and it can be easier to obtain a line of credit from them. They have opportunities that other banks can’t match since they are local, and don’t have to follow some of the same regulations.
If you find any errors in your credit reports, you should dispute them. Write a dispute letter to any agencies with recorded errors, and include supporting documents. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information has been received.
As part of your credit restoration process, it is a good idea to terminate all of your credit cards except one. Transferring multiple balances to one single card is a way to gain control of your finances. It is much easier to manage one large monthly payment than it is to keep track of multiple smaller ones.
Try not to file for bankruptcy. Filing bankruptcy negative effects your credit score for 10 years. This may appear to be a wonderful idea where you rid yourself from all this debt at once, but in actuality it causes more harm than good. By filing for bankruptcy, you might have a lot of trouble getting a credit card or qualifying for a loan in the future.
With the application of this advice, you do not have to be haunted by your poor credit report. Your credit situation can be turned around and you will finally have peace of mind about it. These tips can help you achieve a credit score you can be proud of.
