Knowing what you owed and to whom it was owed may have prevented you from incurring the debt in the first place. The time has come to fix your credit score with a little positive crisis management. The following advice is easy to put into practice, so read it and then put it to use.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. Try to secure an FHA loan; these are federal government guaranteed. Some FHA loans even cover a down payment or your closing costs.
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. You will most likely be approved for this type of card, but you will have to add money to the card before you can use it so the bank will know that you can pay for all of your purchases. By using a new card responsibly, your credit rating will start to increase.
By maintaining a good credit score, you can decrease your interest rate. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.
Interest Rates
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. Some companies that charge high interest rates are running the risk of having those rates challenged by consumers. You did however sign a contract that agrees you will pay off all interests as well as the debt. You can consider suing your creditors if the interest rates are outrageously high.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. This prevents you from sinking further into debt or further damaging your credit score. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Call your credit card companies and request that they lower your limit on your cards. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Credit Card
In order to start repairing your credit, you should close all but one of your credit card accounts. Then, try to arrange payments or transfer your balances to the one account you left open. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Do everything you can to avoid filing bankruptcy. This will have damaging consequences to your credit score for ten years. While ridding yourself of most debt may seem ideal, it is not without consequences. If you choose to file bankruptcy, you’ll be unable to get a credit card or loan in the future.
Paying your credit cards on time keeps you in good standing on your credit report. Every late credit card payment can damage your credit score.
Read every credit cart statement you receive in full. Errors are not as rare as you might think. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. It is solely your responsibility to be sure that everything is correct.
When working with a credit improvement agency, it is imperative to find one that is legitimate. The industry unfortunately has some agencies that fall short on their credit restoration promises. There are numerous people that have been the victims of credit score improvement scams. Take the time to read reviews of different agencies. This will allow you to find an honest one to work with.
Defending Statement
Our initial inclination is to defend ourselves, but in truth, lenders will not even glance at your defending statement. Inclusion of the defending statement could actually have the opposite effect as it brings more attention to the fact that you have a negative mark on your report.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. If you follow some sound advice and use common sense, you can be on your way back to good credit.
