Tips To Help You Get Your Credit In Shape
Posted at by CreditWiz on category CreditKeeping track of who you owe and what you owe can help prevent formation of debt. The time has come to fix your credit score with a little positive crisis management. Follow these tips to repair a bad credit score quickly and efficiently.
If you don’t have very good credit, financing your home may not be easy. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. 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 use a credit card responsibly, you will go a long way in repairing 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. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. 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. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Unfortunately, negative marks will stay on your record for seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Credit repair requires that you begin paying your bills. You should always make an effort to pay your bills on time and in full. Your credit score will increase if you are consistently paying back your debts.
You can work with the credit card companies to start repairing your credit. Avoid collection to improve your credit score. Some of your options include negotiating for a later due date, and asking for reductions in your minimum monthly payments.
Before you choose a credit counseling agency, find out more about them. While many counselors are reputable and exist to offer real help, some do have ulterior motives. There are many scams out there. If you’re smart, you’ll make sure the credit counselor is not a phony first.
As you are now aware from this article, common sense is the prevailing wind that will sail you to better credit scores. If you follow some sound advice and use common sense, you can be on your way back to good credit.