Credit Repair Info All Consumers Should Have
Posted at by CreditWiz on category CreditMany people’s credit scores have suffered as a result of the economic downturn. The following tips are presented to help you improve your credit score and help you be more disciplined with your money.
Financing homes can be made more difficult when your credit score is low. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. FHA loans offer lower down payments and help with closing costs.
The first step to repairing your credit is paying what you owe. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Also be aware that there are other credit counseling services run by dishonest people. These services are scams and should be avoided at any cost. Wise consumers always verify that credit counselors are legitimate before dealing with them.
Ask credit companies to lower all of your card limits. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.
Before you agree to enter a debt settlement, learn about what happens to your credit as a result of it. Certain methods of settling your debts have less detrimental effects on your credit history. Most of the time they want their money and don’t care about your credit score.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. There may very likely be errors or mistakes that can be removed.
Make sure you will get a plan in writing if you decide a payment plan is the best option for you with your creditor. If there is a change of heart, this paper will protect you. Every time you get a debt paid off, ask the company to notify the credit bureaus.
Do not file for bankruptcy if you do not have to. Filing bankruptcy negative effects your credit score for 10 years. While ridding yourself of most debt may seem ideal, it is not without consequences. If you choose to file bankruptcy, you’ll be unable to get a credit card or loan in the future.
To show that you are serious about improving your credit, start systematically lowering all of your account balances. First work on the cards with the steepest balances or interest rates. This shows creditors you are responsible about your credit cards.
Do not carry high balances on any of your credit accounts. Having a lower balance will boost your credit score. The system that determines your credit score can recognize the percentage of credit you have that you are currently using.
Look for a credit repair agency that is legitimate. There are a number of agencies out there that are really not that helpful. Lots of people have been taken in by credit repair schemes. Check online reviews about the company, the Better Business Bureau, and even the State Attorney General’s office to find out what their reputation is before signing anything or giving them any money or account numbers.
Try not to use your cards at all. Try to use cash instead for all of your purchases and bills. If you must use your credit card, pay it back in full.
Repair your credit by building it up again. Prepaid credit cards help you re-establish credit without the risk of falling into an even deeper hole due to delinquent payments. You will prove to creditors that you can pay your bills.
Now that we have gone over the different ways you can go about repairing credit, why not get started now? Low credit scores can adversely affect the actions you take in life so start now to begin increasing your credit rating.