Does thinking about your credit report give you nightmares? The sound advice above will help you repair your credit and be proud that you are financially responsible again.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. If you do not have a down payment or money for closing, consider a FHA loan
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
Before you hire a credit counselor, make sure that you have done your research. You will find some counselors that truly want to help you fix your credit situation, while others may have different motives. There are many scams out there. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Stay cautious and aware of scams online that can lead you to even bigger problems. Scams abound on the internet that show you how to change your credit file. These scams are not legal and there will be repercussions. The legal consequences are expensive, and you might be sentenced to jail.
If you notice credit reporting errors, always file a dispute. Draft a letter to reporting agencies disputing negative entries and also submit any available documentation. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. The documentation you gain from the creditor is important in case the company changes ownership or the creditor is no longer interested in the deal. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
If at all possible, avoid filing bankruptcy. This negative mark will stay on your report 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. It may be impossible for you to get a loan or credit card in the future if you file for bankruptcy.
When you start fixing your credit, pay down balances on the credit cards as soon as you can. First work on the cards with the steepest balances or interest rates. This will show responsibility to creditors.
Carefully read all of your credit statements. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. Do not trust the credit card companies to have your back, guarantee you do not pay debt that is not yours yourself.
Avoid using your credit cards at all. Try to use cash instead for all of your purchases and bills. If you are forced to use credit, pay it back immediately.
Having to deal with debt collectors is often very stressful and distressing. If a debt collection agency is harassing you, writing a cease and desist letter can stop the harassment. These letters may prevent collection agencies from making phone calls, but the consumer remains responsible for paying the debt.
Unfortunately, sometimes you have more debts than you have money to pay them off. Try to divide all your available money between your creditors, so you can pay everyone at least something. Even if all you’re making is minimum payments, this will keep you out of collections.
Credit Report
As you apply the advice you have read here, your credit report will change from a source of stress to a source of pride. You can rebuild your credit so that you can worry about it less. By learning from these tips, you can have the credit report of your dreams.
