Easily Repair Your Credit With These Tips
Posted at by CreditWiz on category Credit
If you knew how much you owed and who you owed it to, you may have been able to avoided bad debt entirely. So now it is time to exercise crisis management and to repair your credit score. Follow this easy advice to get your credit back on track.
For those with imperfect credit, it can be hard to secure financing for a home. 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. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
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 your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
Start paying your bills in order to repair your credit. You need to pay your bills off on time; this is very important. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.
Work closely with all of your creditors if you are aiming towards repairing your credit. If you do this you will not go into debt more and make your situation worse than it was. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Be very wary of programs that do not sound legal; chances are they aren’t. There are many different places that claim they can help you get a new credit profile. You will be prosecuted, it is against the law. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
Call your credit card companies and request that they lower your limit on your cards. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
If getting a new line of credit is vital to your credit score improvement efforts, look into joining a credit union. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
Credit Reporting
If you notice credit reporting errors, always file a dispute. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Sending your letter by certified mail provides you with proof that the letter was received.
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. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Credit Card
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Check to be sure that you actually purchased the things that are listed on your statement, so that you are only paying for things you bought. You should ensure everything is okay and does not have any errors.
Find a legitimate credit repair agency to work with. There are many scams that happen in the industry of credit score improvement. Slimy operators are quite common, so beware of credit score improvement scams. Read reviews online to help you choose the right agency for you.
Try to avoid using credit cards. Using cash will ensure that you stick to your budget and don’t overspend. If you absolutely have no other choice but to use a credit card, pay off the balance in full as soon as possible.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. You can reach your ultimate goal by choosing to follow the straightforward information from the article above.