Not Sure How To Repair Your Credit? Try These Tips!
Posted at by CreditWiz on category Credit
There are a lot of ways to damage your credit score, from falling for a credit card scam to just being unlucky with the recent economy. This article will give you some tips on how you can improve your situation.
Financing a new home can be a challenge, especially if you have a history of bad credit. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
Credit Cards
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Any time you exceed 50% of your credit limit, your credit rating is affected. Pay off credit cards as fast as you can, or spread the debt out further.
You can get a house mortgaged at the snap of a finger if you have a high credit score. Timely mortgage payments augment your credit score. Owning your own home also improves your credit score in the form of having large assets to borrow against. Having a good credit score is important if you need to take out a loan.
For a credit score boost, an installment account will help. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. Paying on time and maintaining a balance will help improve your credit score.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. You should compose a letter to the agencies that have made the errors, and provide proof that you are correct. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.
Credit Card
It will be easier to increase your credit rating if you only have one open credit card account. Transferring multiple balances to one single card is a way to gain control of your finances. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.
Do not file for bankruptcy if you do not have to. This will reflect on your credit report for the next 10 years. It might seem like a good thing but you will be affected down the line. It could be near impossible to receive a credit card or loan if you have filed for bankruptcy.
When you pay your bills on time, you are keeping your credit score high. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
To increase your credit score lower the amount owed on revolving accounts. Your credit score can go up if you just bring your balances down. The Fair Isaac Corporation, FICO system tracks how much of your available credit you are using in 20 percent increments.
Credit Score
Work with a credible credit score improvement service. You have to watch out for credit repair agencies that promise more than they can deliver or are simply fraudulent. A fair number of people have been scammed by these unethical credit score repair companies. One way to separate the wheat from the chaff is to check user reviews online.
Try to use credit cards only for purchases you can afford to pay off. Try to use cash when purchasing. If you ever use a credit card, be sure to pay it all in full.
Repairing the credit you damaged might seem overwhelming, but you can fix your credit with effort and the right kind of information. Use the information you have learned here to help get you started on the journey to a better credit score.