Can These Credit Repair Tips Change Your Life? YES!
Posted at by CreditWiz on category CreditIt can be stressful to deal with having bad credit. It is really bad if you have made bad choices in your past and they are still affecting you now. It’s quite challenging to rebuild your credit, but it’s not impossible! These suggestions can help.
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. You may even qualify for an FHA loan if you don’t have enough money for a down payment or the closing costs.
By maintaining a good credit score, you can decrease your interest rate. This will help you afford your payments, and get out of debt quickly. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. It is necessary to at least pay the minimum, so insure the account is something that you can pay. If you use one of these types of accounts, your score will quickly improve.
No credit repair company can remove factual information, no matter how damaging, from your credit report. Unfortunately, negative marks will stay on your record for seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Good credit isn’t worth much if you are in lockup. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. Do things like this can get you into big trouble with the law. Legal repercussions will cost you a lot of money, and you could go to jail.
Before going into debt settlement, find out how it will affect your credit score. Some agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. Some creditors have no concern over how your credit score can be affected by entering into certain agreements. These people just want your money.
Joining a credit union may be helpful if you want to work on improving your credit score and are finding it difficult to access new credit. Local credit unions might have different credit products than national banks, because they can focus on local market conditions.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
Bankruptcy should be filed only if absolutely necessary. Filing bankruptcy negative effects your credit score for 10 years. Though it may seem necessary at the time, you should weigh the costs over the next ten years before you decide to go through with the filing. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.
When you start fixing your credit, pay down balances on the credit cards as soon as you can. You should first work on paying down the credit cards with the highest balance or interest rates. Your debt will not grow as fast as before, if you get rid of high interest rates first, and your creditors will see you are making efforts.
If you follow the tips in this article, you will see positive results in building your credit score back up. You do, of course, need to keep plugging away and pay your bills on time every month. Repairing your credit is certainly something that you can do; so instead of worrying, you should take action now.