Do You Have A Bad Credit History? Look At These Tips!
Posted at by CreditWiz on category Credit
Has your bad credit been giving you problems? Due to the current economic conditions, the credit scores of many people are dropping. Luckily, there are ways to improve it, and you can start right now by having a look at these credit score improvement tips.
If you don’t have very good credit, financing your home may not be easy. Try to secure an FHA loan; these are federal government guaranteed. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
The first thing you should do when trying to improve your credit is develop an effective plan and make a commitment to adhere to it. If you want to change then you have to work hard and stick with it. Don’t buy anything unless you absolutely need it. Ask yourself whether every purchase is both affordable and necessary, and only buy if the answer to both questions is “yes”.
Interest Rates
You can keep your interest rates lower by working to keep your credit score as high as possible. Monthly payments are easier this way, and you can pay off your unpaid debt. Obtaining lower interest rates will make it easier for you to manage your credit, which in turn will improve your credit rating.
Having a good record allow you to qualify for things like a home mortgage. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. If you have to take out a loan, this will help you.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. More importantly, you need to start paying your bills in full and on time. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Working closely with the credit card companies can ensure proper credit restoration. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Make sure to have as low as possible of a credit line available to you. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
Check any negative items on your reports carefully when you begin fixing your credit. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Credit Score
If you have been frustrated and felt discouraged about your bad credit score, take these tips and use them to change that. This information can assist you in stopping the downward direction of your FICO credit score, and making it head back up.