How You Can Successfully Repair Your Credit
Does your credit report smell like rotten eggs, dead fish, and cow manure all mixed together? These great tips will get you on the right track to repair your credit and not have to worry anymore about what the future holds.
Having poor credit makes financing a home a nightmare. If possible, apply for an FHA loan; these loans are backed by the United States government. 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.
If your credit does not allow you to obtain new credit, getting a secured one is much easier and will help fix your credit. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. If you use a credit card well, your credit rating will begin rising.
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. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
Make sure you check out any credit counseling agency you consider using. There are some legit counselors, and there are some that have ulterior motives. Some are just people trying to scam you. Before you conduct any business with a credit counselor, check into their legitimacy.
The first step in credit restoration is to close all but one of your credit accounts as soon as possible. Then, try to arrange payments or transfer your balances to the one account you left open. Paying off one main credit card will be easier than paying off several cheaper ones.
Look through your credit card statement each month and make sure that it is correct. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Doing this will ensure that you keep a solid credit score. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
It is important to read all credit card statements you receive. Double-check every charge, to make sure that everything is accurate and you were only charged once for your purchases. You are the only person that is responsible for making sure the statements are error free.
Lowering the balances on any currently revolving accounts will increase your credit score. You can raise your score by lowering your balances. When your available credit passes 20, 40, 60, 80 or 100 percent, it gets noticed by the FICO system.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. It can actually backfire. It brings attention to a part of your report you would rather a lender not look at very closely.
If you are having a lot of trouble with your credit, consider locking up your credit cards for a while. Use cash when you need to buy something. If you have no choice but to use a credit card, always pay the balance in full each month.
Collection agencies are stressful to deal with. You can submit a cease and desist statement to a creditor to stop harassment. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
When you are involved in a credit crunch, you have many debts but not enough money to pay them. Make sure you pay all your creditors instead of limiting it to just a few. Paying each creditor something, even less than the minimum payment due, can usually appease your creditors enough that they will not turn your accounts over to collection agencies.
One way you can fix your credit is by taking small steps to build good credit. Using a prepaid credit card will help to build your credit score, without the worry of late payments, and bad marks on your credit report. This approach will indicate to others that you are serious about taking responsibility for your financial future.
If you use the sound advice in the article above, your bad credit will no longer give you bad dreams. Not only can you fix your credit, but you can let your mind rest easier. You can greatly improve your your credit report if you adhere to the tips within this article.