Sound Advice To Recover From Damaged Credit
Posted at by CreditWiz on category Credit
You may be able to prevent forming debt simply by knowing exactly how much you owe and to whom. But now it is time to work on fixing your score for a solid future. The following information is quick, simple and can help repair your credit if followed correctly.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
You can get a house mortgaged at the snap of a finger if you have a high credit score. Paying mortgage notes on time will keep your credit scores high. Having a major asset like a house also looks good to potential creditors. This will be very helpful if the time comes where you need to take out a loan.
Before using a credit counselor, it’s important to research them completely. Many may have ulterior motives, so make sure you are not being duped. Some will try to cheat you. Intelligent customers will make sure to determine the legitimacy of a credit counseling agency before acquiring their services.
Avoid credit schemes that will get you in trouble. Sites may act like you can create new credit lines and tell you how to do it. You will be prosecuted, it is against the law. Penalties can include large fines and possibly even incarceration.
Credit Score
Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. You should know all about the methods you can use if you are going to enter into an agreement with someone. The creditor is only interested in receiving the money due, and is not concerned with your credit score.
You should examine any negative entries on your credit report thoroughly if you want to fix your credit problems. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
Credit Unions
Joining a credit union is a great way to build your credit if you are having a difficult time doing so elsewhere. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.
Repairing your credit rating and cutting down your debt involves a lot more common sense than anything else. Using this easily-understood information can help you reach your goal.