Easy Ways To Raise Your Credit Score
Posted at by CreditWiz on category CreditHaving bad credit is an extremely annoying issue to deal with. Bad credit makes it difficult to take advantage of any financial opportunities that arise. You can repair it though, and make steps to prevent it from spiraling down further.
For some it may hard to finance their home due to having less than ideal credit. Try to secure an FHA loan; these are federal government guaranteed. 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 is such that you cannot get a new card to help repair it, apply for a secured one. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. By using a new card responsibly, your credit rating will start to increase.
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. 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.
Interest Rates
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. If you are being charged a distressingly high interest rate, you may be able to talk to your creditor. You did sign a contract and agree to pay interest. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. Unfortunately, this negative information stays on your credit record for at least seven years. However, if there is incorrect information, you can have it cleared up easily by yourself.
Dispute any errors that you find on any of your credit reports. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Mail your dispute packet with receipt confirmation so you will have proof the agency has received it.
If you are living beyond your financial ability, stop now. This may mean that you need to alter the way you have been thinking. In the not too distant past, credit was easy and people could stretch themselves too far, but now the economy is paying the price of those days. Examine your budget, and figure out how much extra money you have to shop with.
These tips will make a big difference in your fight against bad credit. Because a good credit rating is important in so many financial transactions, the time you spend learning about credit repair is well-spent.