Maximize Your Credit Rating With Expert Repair Tips
Posted at by CreditWiz on category CreditIt doesn’t matter whether you fell victim to people giving out free credit cards, spent too much money or was hit very hard with the recession. Chances are that your credit has been damaged. Fortunately, there are quite a few ways that you can remedy your credit situation.
Financing a home can be difficult if you have bad credit. See about getting an FHA loan, which are loans that the federal government guarantees. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
Give your credit card company a call and ask them to lower the limit on your credit card. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some debt settlements are better than others. Do your homework and find out how your score will be impacted before agreeing to anything. Most of the time they want their money and don’t care about your credit score.
Read your negative reports carefully when attempting to rebuild your credit. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.
Dispute any errors that you find on any of your credit reports. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Check your credit card carefully each month to ensure that there’s no incorrect information. Contact the credit card company right away if there are incorrect fees, so that they won’t be on your credit report.
Avoid bankruptcy at all costs. This will have damaging consequences to your credit score for ten years. It can be tempting to just go ahead and file bankruptcy to get out from under the debt, but the detrimental effects can be long lasting. 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.
If you need to repair your credit score, you should pay your credit card balances as fast as possible. Work on paying off credit cards that have the highest interest rates or high balances. This will show responsibility to creditors.
Try lowering the balance of any revolving accounts you have. Maintaining smaller balances can improve your credit rating. The FICO system notes when balances are at 100, 80, 60, 40 and 20 percent of your total credit available.
It can seem impossible to repair your credit score, but just knowing what the steps are and making a plan can make it seem much less intimidating. Apply the tips you learned here and get started on your way to good credit.