Top Credit Repair Tips That Work Fast
Posted at by CreditWiz on category CreditThere are many downfalls to having bad credit, including preventing you from getting a loan approval, or leasing a car. If you don’t pay your bills on time, your credit score will suffer. If you need to improve your credit, here are a few tips to help you start.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. FHA loans are good options in these circumstances, because the federal government guarantees them. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
The first step in repairing your credit is figuring out a plan that works for you, and sticking with it. You have to stay focused and committed if you want to make concrete changes to your financial situation. Purchase nothing but the essentials. Consider if a purchase is both essential and affordable, and only purchase it if you can answer “yes” on both counts.
If you are unable to get a new card because of your bad credit, try to apply for secured cards. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you use it correctly, a new card can help you fix your credit.
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. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. You can consider suing your creditors if the interest rates are outrageously high.
As you work toward repairing your credit score, you should be willing to cooperate and work with your creditors. Avoid collection to improve your credit score. See if the company will allow you to modify the monthly due date, or reduce the payments.
Give your credit card company a call and ask them to lower your credit limit. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Find out how the process will affect your credit rating before you agree to any debt settlement agreements. Some agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. The creditor does not care what happens to your credit score, as long as they get their money.
Read your negative reports carefully when attempting to rebuild your credit. 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.
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 the only way that you have of protecting yourself. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
It is important for you to thoroughly look over your monthly credit card statements. Always check to make sure that you are being charged correctly, and not being double charged or charged for items that you did not buy. Take the reigns, and go over your monthly credit card statements. No one else will do it, it is your responsibility.
Credit scores will affect those who want to take out any sort of loans. Regardless of the amount of debt you currently have, and how low your credit score is right now, you can begin to improve your credit by following the advice provided by this article.