With unemployment so high and costs of living continuing to rise, it is unsurprising that the average credit score is lower than it has been in some time. These tips can save you from that and improve your credit score.
An imperfect credit rating can make financing a home even more difficult than normal. An FHA loan can be helpful in such a case since the federal government backs these loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
If you want to fix your credit, you must first conjure a workable plan that you can stick to. Real changes come from commitment to healthy spending habits. Only buy what you absolutely need. Look at your purchases closely. If you cannot afford something, and you do not need it, do not buy it.
Make sure that you are never using more than 50% of your credit card’s limit. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
Installment Account
If you want to boost your credit score and earn a decent living, open an installment account. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. Your FICO score will rise over time, if you responsibly manage this type of account.
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. Creditors are skirting aspects of the law when they hit you with high interest rates. However, you have entered into a legal agreement that requires you to pay accrued interest. Your interest rates should be regarded as too high if you plan on suing your creditors.
Make sure you do your research before deciding to go with a particular credit counselor. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. Others are just plain fraudulent. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Call each of your charge card companies and ask them to lower the limit on them. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
When attempting to improve your credit, you should go over any negative marks with a fine tooth comb. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.
Dispute any errors that are on your credit report so they are removed. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Make sure when you send the dispute package that you request proof by signature that it was received.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. Finally, when it is paid in full, get documentation thereof to submit to credit agencies.
You should keep a low balance on your credit cards to improve your credit rating. Your credit score can be raised just by reducing your balances. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.
Look for a credit restoration agency that is legitimate. There are plenty of credit improvement agencies that don’t follow through with their promises. A fair number of people have been scammed by these unethical credit score improvement companies. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
When repairing your score, be cautious of law offices and lawyers that promise fixes for credit. Because of the surge of credit issues out there, a lot of unscrupulous lawyers advertise that they can repair your credit for large fees. Look into potential lawyer help carefully to make sure you aren’t being scammed.
Now that we have gone over the different ways you can go about repairing credit, why not get started now? Act now to start on the road to improving your life by improving your credit.
