Real Solutions To Your Credit Woes
Posted at by CreditWiz on category CreditDue to the state of economy, it is no surprise that so many people have bad credit scores. Thankfully, these hints will give you some valuable insight into how you can proceed to build better credit ratings.
Having poor credit makes financing a home a nightmare. FHA loans are good options in these circumstances, because the federal government guarantees them. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
Planning is the first step to repairing your credit. Real changes come from commitment to healthy spending habits. Stick to the essentials, and avoid frivolous purchases at all costs. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts. This is why secured cards are often easier to get. Limited spending and regular payments can turn a new credit account into a valuable credit restoration tool.
Credit Limit
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
By opening an installment account, it could help improve credit score and you could have a decent living. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. You can quickly improve your score by successfully managing these accounts.
An important tip to consider when working to repair your credit is to work closely with your credit card companies. You should contact the company and request a lower interest rate or a due date change if necessary. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Other counselors are nothing more than scam artists. Intelligent customers will make sure to determine the legitimacy of a credit counseling agency before acquiring their services.
If you are able to successfully negotiate a payment schedule for a debt, it is important to request a copy of the agreement in writing. This will protect you should the company change its policies. Once you make the final payment, get a statement that verifies that the debt has been satisfied and send it to the various credit reporting agencies.
Now that you know various ways to repair your credit, why should you wait to use them? Don’t let poor credit affect your life any longer. Use the tips presented here to repair you score and your overall financial health.