Get Your Credit In Tip-top Shape
Posted at by CreditWiz on category CreditHas bad credit made your life miserable? In the current economy, it’s not uncommon to see credit scores quickly declining. You can turn things around, though. A good start is to check out these tips to repair your credit rating.
Financing a home is not always an easy task, especially when you have less than perfect credit. Look into alternative financing options like FHA loans. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.
If your credit is such that you cannot get a new card to help repair it, apply for a secured one. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. A responsibly used new credit card will begin healing your credit score.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. When your debt is over 50%, credit ratings usually go down. With that said, try to spread out the debt that you have or try paying it off.
You can get better interest rates on credit cards and loans when you have a good credit score. By lowering your monthly payments, you’ll be able to reduce your debt more quickly. Obtaining lower interest rates will make it easier for you to manage your credit, which in turn will improve your credit rating.
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
If you are trying to repair your credit, check all of your negative reports very carefully. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
Anything on your credit report that you feel is inaccurate should be disputed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Start living within your means. This will require a change in your thinking. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! Examine your finances and make wise decisions about how much you should be spending.
Shut off all but one credit card if you want to fix your credit. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
If bad credit is causing your to worry, then these tips are your passport to a better life. The helpful hints here can end your credit rating free-fall and even encourage it to start rising.