Has your bad credit been giving you problems? In these depressed economic times, a lot of folks are watching their credit ratings sink. There are, however, ways to better it, so be sure to read these tips to repair it.
Financing a home is not always an easy task, especially when you have less than perfect credit. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans are great for the individuals that do not have the financial capability to make down payments.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You must be committed to making real changes in the way you spend money. Only the necessities can be purchased from here on in. Only buy something if you have to have it and you can afford it.
Credit Cards
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. These types of credit cards often require a good faith deposit to open a new account. Limited spending and regular payments can turn a new credit account into a valuable credit repair tool.
Make sure that you are never using more than 50% of your credit card’s limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
If your creditors try to jack up your interest rates, do not pay them. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. You did sign a contract saying that you would pay off the debt. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
The first step to repairing your credit is paying what you owe. However, it’s not enough to just pay your bills; you need to make your payments on time and in full. Your FICO score will begin to increase immediately after you pay the bills that are past due.
Credit Card
A good tip is to work with the credit card company when you are in the process of repairing your credit. This will keep you from increasing the amount of debt that you have. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
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.
Anything on your credit report that you feel is inaccurate should be disputed. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
The first step in credit score repair is to close all but one of your credit accounts as soon as possible. It is important to make small payments or transfer a balance to the open account. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Always examine your monthly credit card bill to make sure everything is accurate. If this is the case, you need to call the company right away to avoid them from reporting it to credit reporting agencies.
Credit Score
If you felt bad about your credit score, use these strategies to change that. Stop the damage and start repairing your credit score today.
