Proven Tips For Repairing Your Bad Credit
Posted at by CreditWiz on category CreditWhether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Fortunately, you can take some actions to get your credit score climbing in the right direction.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. See about getting an FHA loan, which are loans that the federal government guarantees. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
When you’re looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Sadly, harmful entries remain on your report for roughly seven years. You can erase information that is incorrect from your credit record.
You must pay your bills consistently if you want to repair your credit. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. Some credit counselors offer real help while others have more dubious things in mind. Other options are clearly scams. 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.
Contact the credit card company and ask to get your card limit lowered. Doing this keeps you from overtaxing yourself. It also shows the lending company that you are responsible.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. With help from a credit union you might get better rates than at another bank, since credit unions better understand the current area compared to the national situation.
If you find any errors on your credit report, you should dispute them. You should contact the credit bureaus both online and by certified letter; be sure to include proof of your claims. Sending your letter by certified mail provides you with proof that the letter was received.
As part of your credit repair process, it is a good idea to terminate all of your credit cards except one. You may be able to transfer balances to your remaining account. By doing this, you can work towards completely paying off one credit card with a large debt, rather than working piecemeal with many smaller debts.
Go over your monthly credit card statements to check for mistakes. Whenever you see any, it will be necessary to discuss the situation with your creditor so that they do not submit negative information to the credit agencies.
This is to keep your credit in good standing. Anytime you don’t make a payment on time it can damage your credit and it can be hard to get a loan anywhere.
When you receive a credit card statement you should immediately look at the statement. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. It is solely your responsibility to be sure that everything is correct.
Fixing your damaged credit may seem like an overwhelming task in the beginning, but with a bit of work and a bit of guidance, you can turn things around and get your credit back on track. Apply the information you learned within this article to help you recover your credit score.