Improve Your Bad Credit With These Tips
Posted at by CreditWiz on category CreditIs your credit terrible? The sound advice above will help you repair your credit and be proud that you are financially responsible again.
Financing a home is not always an easy task, especially when you have less than perfect credit. FHA loans are good options in these circumstances, because the federal government guarantees them. FHA loans can even work when someone lacks the funds for down payment or closing costs.
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. Even though this card will be secured by your own money, you will make payments and manage it as if it were unsecured. This will improve your credit as you show yourself able to make the payments on time.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. You may be able to challenge an interest rate that is extremely high. Although, in reality, you did agree in advance to pay any interest charges incurred. You need to be able to prove the interest rates are too high if you want to sue your lenders.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. You need to pay your bills off on time; this is very important. Your FICO score will begin to increase immediately after you pay the bills that are past due.
Work closely with all of your creditors if you are aiming towards repairing your credit. If you do this you will not go into debt more and make your situation worse than it was. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.
Contact the credit card issuer with a request to lower your card’s limit. Not only will this stop you from overspending, it will indicate responsible behavior to a credit card company, and may enable you to get future credit.
Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Some methods of credit settlement can be a blow to your credit score, so it’s important to check into your options and find one that won’t hurt you in the long term. Creditors are only trying to get the money that you owe them and could care less how that hurts your credit score.
When looking over your credit report, look closely at the negative report that are listed. Errors are not infrequent in credit reports. If you can prove the credit bureau is in the wrong, they should correct the reported error or remove it entirely.
If you find inaccuracies on your credit report, make sure to dispute them. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.
As you have read, a bad credit report doesn’t have to give you nightmares. You can fix your credit and no longer have it hanging over your head constantly. Following these tips can get you the credit card report you’ve been wishing for.