Repair Your Credit With These Helpful Tips
Posted at by CreditWiz on category Credit
A credit report that is less than stellar can give rise to many problems and can be a source of stress. If you have made some bad choices in the past, it can be even more frustrating. It can be difficult to get a good credit score, but it’s doable. Read this article for some strategies that can help.
If you don’t have very good credit, financing your home may not be easy. 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. You may even qualify for an FHA loan if you don’t have enough money for a down payment or the closing costs.
If you want to avoid paying a lot, you can pay off debts that have a huge interest rate. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. However, when you signed up for the line of credit you also agreed to pay the interest. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
When you’re looking to fix your credit, be cautious of credit score improvement companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative credit information remains on your record for up to seven years. Be aware, however, that incorrect information can indeed be erased from your record.
Before consulting a credit counseling agency, be sure to check out their background and history. Some counselors truly want to help you, while others are untrustworthy and have other motives. Other options are clearly scams. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.
Good credit isn’t worth much if you are in lockup. Don’t buy into scams that suggest you create new credit files. You will be prosecuted, it is against the law. Legal repercussions will cost you a lot of money, and you could go to jail.
Contact the credit card company and ask to get your card limit lowered. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
If you find any errors in your credit reports, you should dispute them. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
If you are having problems retaining control of your charge habits, close all old accounts except for one. You should arrange to make payments or make a balance transfer to your open account. Doing so will allow you to pay off one individual debt rather than a multitude of lesser balances.
Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
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. If you have finished paying it off, you should request a confirmation so you can send it to the credit reporting agencies.
Avoid bankruptcy at all costs. The record of the bankruptcy appears on your report and affects your credit rating for up to 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. Once bankruptcy has been filed, it could permanently halt your chances of ever obtaining credit again in the future.
Using this advice can assist you in getting your ideal credit score. You do, of course, need to keep plugging away and pay your bills on time every month. Clawing back from a credit disaster is doable, so stop making excuses and start today!