Start Repairing Your Credit Score With This Advice
Posted at by CreditWiz on category CreditIs worry about your credit report preventing you from getting a good nights sleep? By following these tips, you can achieve a credit report that you do not have to be ashamed of.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If you are in this situation you should look into FHA loans before speaking with a bank. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
The higher your credit score, the lower the interest rate that you can obtain will be. You’ll be able to make your payments more easily and get your debt paid off quickly. Make sure to use a company that gives you the best rates so your bill isn’t being built up by money you haven’t even spent.
If you credit score is good, you should have no problem purchasing a house and obtaining a mortgage. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. Owning a valuable asset like a house will improve your financial stability and make you appear more creditworthy. That way, you will be in a better position to secure loans in the future.
A good tip is to work with the credit card company when you are in the process of repairing your credit. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Do not try something that you do not know is legal or illegal. There are plenty of credit scams that purport to erase your existing credit file and create a new one. This tactic is not legal, and you face serious repercussions if you are caught. You may end up in jail if you are not careful.
Call your credit card companies and request that they lower your limit on your cards. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
In order to start repairing your credit, you should close all but one of your credit card accounts. Transferring multiple balances to one single card is a way to gain control of your finances. Instead of paying several smaller credit card bills, you can work to pay off one credit card.
If you work out a payment plan with a creditor, you should make sure to get the plan in writing. This provides you with documentation that an agreement is in place in case the company changes hands or the creditor tries to change the terms of the agreement. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
If you are late with your payment, your credit status will suffer. Every late payment appears on a credit report, and could potentially hurt your chances at a loan.
As you apply the advice you have read here, your credit report will change from a source of stress to a source of pride. When you face your fears about your credit, you can get started on fixing it. Just follow these tips we listed, and you will have the credit report that will be the envy of all of your friends.