How To Repair Your Damaged Credit Report
Posted at by CreditWiz on category CreditA poor credit score can put you in a bad position. 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. Fortunately, there are some things you can take action on right now to raise your credit score, so read on and get ready to regain control of your credit.
Having poor credit makes financing a home a nightmare. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. Some FHA loans even cover a down payment or your closing costs.
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. When you open a secured credit card account, you place money on deposit to cover any charges you may make. This ensures in advance that you will have enough money to pay for your debt. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Keep your credit card balances below 50 percent of your credit limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
Good credit scores allow you to take out loans, buy a house, and make other large purchases. Making mortgage payments in a timely manner helps raise your credit score even more. Owning your own home gives you a significant asset to use in securing your finances, and your credit score will reflect that asset. This will also be useful in the event that you end up needing to borrow funds.
If your creditors try to jack up your interest rates, do not pay them. In most cases, creditors are somewhat limited in the amount of interest they can charge. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
Paying your bills is a straightforward, but truly vital prerequisite for credit repair. Pay these bills on time, and make sure you pay the full amounts owed. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Before consulting a counselor for credit repair, do your research. There are some legit counselors, and there are some that have ulterior motives. There are a lot of people out there that are trying to take advantage of those who are down on their luck. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. Many collectors just want to get paid and don’t care about credit consequences.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Also include a request for a return receipt to make sure the agency gets it.
Bad credit can really get you down in the dumps. Here are some helpful hints for turning your credit around.