Credit Repair Advice For Recovery And Renewal
Posted at by CreditWiz on category CreditHaving bad credit can enable you to feel as if you’re being persecuted. You may have gone through bad life experiences or made simple mistakes, and a poor credit score can remind you of that bad time, making it hard to move forward. Luckily, there are things you can do today to make your credit better; here are a few great ways to do that.
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. 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.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
When you have a good credit rating, you will be able to easily get a mortgage loan. Paying down your mortgage improves your score as well. Owning a home is a great thing to have to help with your credit score. The house secures your finances and adds to your assets. This will also be useful in the event that you end up needing to borrow funds.
Never trust a business or person who offers to clear up your credit for a price. Especially if it is correct information they say they can remove. It seems unfair, but accurate negative information will stick around for seven years. Be aware, however, that incorrect information can indeed be erased from your record.
Start paying your bills in order to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Your FICO score will begin to increase immediately after you pay the bills that are past due.
Before consulting a credit counseling agency, be sure to check out their background and history. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Others are just plain fraudulent. You should always find out if a credit counselor is the real thing.
Find out how your debt settlement contract will make your credit score look. Some ways of dealing with debt repayment are better for your credit score than others, so make sure you are achieving the best outcome for you before you sign anything. Many collectors just want to get paid and don’t care about credit consequences.
Bad credit can really get you down in the dumps. In this article, we will provide some great tips that can turn your credit, and your attitude, in a new direction.