Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you’ve probably damaged your credit. The good news is that there are some things that you take steps to begin to repair it.
If your credit is not perfect, getting a mortgage can be tricky. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. 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 you have credit cards with a balance that exceeds 50% of your credit limit, you should pay it down to below 50%.
Opening up an installment account will help you get a better credit score and make it easier for you to live. An installment account requires a monthly payment, make sure you can afford it. Handling an installment account correctly will help you improve your credit score in a short period of time.
You can keep your interest rates by maintaining a favorable credit rating. This should make your monthly payments easier and allow you to pay off your debt a lot quicker.
Do not involve yourself in illegal activities. The Internet is rife with many scams that will go into detail about creating yourself a brand new credit file and making the old one magically disappear. It’s illegal to do this and you can get caught easily. The legal consequences are expensive, and you might be sentenced to jail.
Interest Rates
Give your credit card company a call and ask them to lower the limit on your credit card. You will not be able to spend too much and they will see that you are responsible.
You can dispute inflated interest rates.Creditors are skirting a fine line of law when they hit you with high interest rates. You did sign a contract saying that you will pay off the debt. You may wish to make a legal claim that the interest rates are too high if you want to sue your lenders.
Before you commit to a settlement, you should first determine exactly how the agreement will affect your credit. There are methods that are going to be less damaging than another, and all should be researched before you enter an agreement with a creditor. They do not worry about how your credit score looks; they want to get money.
If you want to fix your credit avoid companies claiming they can remove all of your issues, they are lying. Negative credit information remains on your history for seven years.
If credit repair is something you have been considering, the first step would be to pay down your credit card balances. No matter what the balances are on your credit cards, pay down the highest interest rate cards first. Creditors will see this action as a sign that you are responsible and educated.
Make sure you thoroughly research into any credit counselor before you do business with them. There are some counselors that are real, and there are some that have ulterior motives. Some credit services are outright scams.
This helps you retain a proper credit status. Every time you make a late payment, it is logged in your credit report which can hinder your ability to take out a loan.
Do not get mixed up in illegal activities. There are scams all over the web that will show you how to create a brand new credit file. Do things like this can get you will not be able to avoid getting caught. You may end up in jail time.
For a better credit rating, lower the balances on your revolving accounts. Reducing the amount of debt you’re carrying is one of the best ways to improve your credit score. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Joining a credit union is a way to build your credit score when you are having a hard time getting credit.
One of the most stressful things about poor credit is dealing with debt collection agencies. Cease and desist instructions can be used to ward off debt collectors to a point, but only really to prevent harassment. Even when the phone calls from collection agencies have stopped, the associated debts must still be paid.
With some hard work and guidance, you can easily fix your damaged credit and help receive the rating that you deserve. With the advice you were given in the above article, you can get to work on improving your credit score today.
Be very careful about credit professionals who state that they could fix your credit quickly. Since a lot of people go through credit problems, predatory lawyers emerged that charge huge fees to repair their client’s credit in ways that are either illegal or useless. Do a thorough background check on any lawyer advertising credit repair services before handing over any money.
