Don’t Suffer Because Of A Poor Credit Score! Take Charge With These Simple Steps.
Posted at by CreditWiz on category CreditHaving a poor credit score is among the most frustrating situations that takes the fun out of life. Bad credit makes it difficult to take advantage of any financial opportunities that arise. You can, however, fix your credit problems and have a brighter future.
For those with imperfect credit, it can be hard to secure financing for a home. FHA loans are good options in these circumstances, because the federal government guarantees them. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
Pay down the balance on any credit card that is 50% or more of the credit limit. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.
To improve your credit rating, set up an installment account. You have to keep a monthly minimum on an installment account, so make sure you open an account that you can afford. You can quickly improve your score by successfully managing these accounts.
Working closely with the credit card companies can ensure proper credit restoration. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Talk to the company and see if you can change your due date or monthly fees.
Contact your creditors to request a reduction in your credit line. This helps you from overspending and shows that you want to borrow responsibly and it will help you get credit easier in the future.
Before going into debt settlement, find out how it will affect your credit score. Some methods will be less damaging than others, and you need to research them all before signing an agreements with a creditor. Debt settlers are more interested in their money than your credit rating.
Do everything possible to avoid bankruptcy. It is noted on someone’s credit report for 10 years. It might seem like a good thing but you will be affected down the line. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
Lowering the balances on revolving accounts can help you to get a better credit score. You can up your credit score by just keeping your balances lower. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Lenders won’t bother to look at those statements and therefor they are a waste of your time. The most it will do is draw more attention to the bad aspects of the report.
Try not to use your cards at all. Use cash to pay for things whenever possible. Pay off any credit card purchases immediately.
One of the most stressful aspects of handling bad credit is dealing with debt collection agencies. Cease and desist correspondences can be legally used by a consumer to put off collection agencies; however they only help stop the harassing phone calls. You may be able to stop the deluge of calls from a collection agency, but the debt must still be dealt with.
Avoid using a law office that claims they can fix your credit. Some lawyers have chosen to take advantage of the people who have bad credit by charging a lot of money for things that are useless to their credit or are illegal. Investigate a lawyer before hiring them to help you in repairing your credit.
You may get into the situation that you have multiple debts and you just don’t have enough money to pay them all. Spread your payments to all of your different creditors. Even if you can only meet the minimum payment, you will avoid having the bill sent to collections.
The tips within this article will help you repair your credit score and continue to have control over your debts. Having a solid credit score can impact many important purchases that you make, so taking time from your busy schedule to read up on this subject is always a good idea.