Ways To Rebuild Credit On Your Own
Posted at by CreditWiz on category CreditDo you have such poor credit that you have trouble sleeping? The following advice will help in the path to getting your credit back on track.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If possible, apply for an FHA loan; these loans are backed by the United States government. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
Credit Score
An installment account is a great way to increase your credit score. With this sort of an account, you need to keep a minimum. Keeping an installment account will help your credit score.
Never trust a business or person who offers to clear up your credit for a price. Especially if it is correct information they say they can remove. These things are, generally, on your record for seven years. However, information that is not correct can be removed.
You should consider talking to directly with your creditors when you are trying to improve your credit. Talking to them will help keep you from drowning further in debt and making your credit worse. Don’t be afraid to ask for alterations in interest rates or dates of payment.
Never hire a credit counseling company without doing some research, so as to ensure they are a reputable organization. There are a lot of unscrupulous agencies scattered in among the few legitimate credit counselors that are really there to help you. Some credit services are nothing more than fly-by-night scams. You should always find out if a credit counselor is the real thing.
If you find inaccuracies on your credit report, make sure to dispute them. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Ask for a return receipt so that you can prove that the agency got your package.
Stop spending more money than you have available. You need to change your way of thinking in this regard. A lot of people rely on credit to maintain an unrealistic lifestyle, but when the credit runs out, all that’s left is a very big bill. Instead of spending more than you can afford, take a long hard look at your income and expenses, and decide what you can really afford to spend.
If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. Having the plan in writing will protect you if the creditor reneges on the plan or if your debt is transferred to another creditor. After you have paid off your debt, send proof of this to the major credit agencies.
When you start fixing your credit, pay down balances on the credit cards as soon as you can. Pay down the cards with the largest balances and interest rates first. By doing this, you will show your creditors that you are trustworthy with your credit.
This helps you retain a proper credit status. Late payments are reported to all credit report companies and will greatly decrease your chances of being eligible for a loan.
It is important to read all credit card statements you receive. Make sure that all of your fees and charges are correct and that there are not any items that were not authorized by you. It is solely your responsibility to be sure that everything is correct.
Look for a credit improvement agency that is legitimate. The industry unfortunately has some agencies that fall short on their credit restoration promises. Slimy operators are quite common, so beware of credit repair scams. Use online reviews and other resources to find an honest agency that can help you.
Credit Card
Credit card usage should be eliminated. Pay for things with cash whenever possible. If the purchase you’re buying is more than you can currently afford you can use a credit card, but pay it back as soon as possible.
As you have seen, no longer does your credit does not have to be something that keeps you up at night. You don’t have to be afraid of your credit score; you can improve it. You can have a dream worthy credit score by following a few simple steps shared in this article.