How You Can Have Good Credit Again
Posted at by CreditWiz on category CreditA bad credit score is a source of stress. A bad credit score can be particularly irritating if it constantly reminds you of the bad mistakes that caused the drop in your credit score. It can be difficult to get a good credit score, but it’s doable. Read this article for some strategies that can help.
If your credit is not perfect, getting a mortgage can be tricky. FHA loans are good options in these circumstances, because the federal government guarantees them. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
If you have to improve your credit, make a solid plan and follow it. Be totally committed to changing your spending habits. Only the necessities can be purchased from here on in. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
A secured credit card might be a good option for the person with a poor credit score. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts. This is why secured cards are often easier to get. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
To earn a sufficient wage and boost your credit, try opening an installment account. When opening an installment account, you need to make a monthly payment, so get something you can afford. If you use these accounts, your score will go up rapidly.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. These things are, generally, on your record for seven years. Items that you can get taken off your record are those that have been reported incorrectly or unfairly.
Call your credit card companies and request that they lower your limit on your cards. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
If your credit isn’t so hot, but you need new credit to demonstrate responsibility, then look up your local credit union. You may find that the credit union has more options and better rates to offer you than banks will.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. You will want to either transfer your balances onto the one remaining card or set up payment arrangements, but close the account to new charges. This can help you avoid paying down smaller balances and focus on paying one card off.
You have a long way to go to get the credit score you want from the advice you got here. Just be sure to remain consistent and follow through on your obligations. Clawing back from a credit disaster is doable, so stop making excuses and start today!
