How To Fix Your Credit In A Few Easy Steps
Posted at by CreditWiz on category Credit
Bad credit can add salt to an economic wound. The circumstances that lead to bad credit are rarely ones you want to look back on fondly, but a low credit score provides a constant, irritating reminder. However, your luck can change when you realize that there are simple things that you can do immediately to raise your credit.
If you don’t have very good credit, financing your home may not be easy. FHA loans are good options in these circumstances, because the federal government guarantees them. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
If you can’t get a normal card due to low credit score, look into a secured card. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. Responsible use of a credit card can help rebuild your credit.
Interest Rates
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. However, you have entered into a legal agreement that requires you to pay accrued interest. You need to be able to prove the interest rates are too high if you want to sue your lenders.
You won’t be able to repair your credit until you are able to pay those bills. You should always make an effort to pay your bills on time and in full. When you pay off past due lines of credit your credit score will go up.
Contact the credit card company and ask to get your card limit lowered. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
In order to get a hold on your credit, focus on closing all accounts except one. You may be able to transfer balances to your remaining account. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.
Credit Card
It is crucial that you review credit card bills on a monthly basis to check for errors. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. This is the only way that you have of protecting yourself. After you have paid off your debt, send proof of this to the major credit agencies.
To fix damaged credit, pay off your credit card balances as fast as you can. First, work on the accounts with the highest interest rates and the highest balances. This helps creditors realize that you are using credit cards wisely.
This is the first step toward having an A+ credit rating. Every late credit card payment can damage your credit score.
Unfortunately, no financier is going to be interested in the statement you provide when they are examining your credit history. The less you can do to attract attention to negative reports, the better.
Debt collectors are an intimidating and stressful part of dealing with bad credit. A consumer had the option of making use of cease and desist statements to persuade collection agencies, but remember that C&D statements only prevent them from harassing you. This doesn’t let the customer off the hook for the debt, it merely stops the threatening calls.
Although it’s easy to feel like you can never recover from bad credit, it is possible to do so. Here are some helpful hints for turning your credit around.