Tips To Get Your Credit On Track
Posted at by CreditWiz on category CreditWhen struggling with your credit, it can seem like finding what you need to fix it is impossible. Do not let this overwhelm you: this article contains the basics of what you need to know to fix your credit. Putting these easy-to-use tips into action can prevent hassles, and put you on the fast track to great credit.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. 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. If you do not have a down payment or money for closing, consider a FHA loan
Pay down the balance on any credit card that is 50% or more of the credit limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
If your credit is good, it’s easy to get a mortgage on a new home. Staying current with your mortgage payments is a way to raise your credit score even more. Owning your own home gives you a significant asset to use in securing your finances, and your credit score will reflect that asset. This is helpful in case you want to borrow money.
To improve your credit rating, set up an installment account. You need to review the terms of an installment account carefully, because you’ll be required to maintain a certain monthly minimum. Handling an installment account correctly will help you improve your credit score in a short period of time.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. If you are being charged a distressingly high interest rate, you may be able to talk to your creditor. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. By doing this, you will keep your credit from getting worse by making sure that your debt does not increase. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Don’t attempt to fix your credit in a way that will result in you breaking any laws. As we speak, people are trying to take advantage of illegal practices to have people create credit files that can get them into trouble. Doing this is illegal, and you will be caught. Legal ramifications can cost a lot, and you may go to jail.
If you find any errors on your credit reports, dispute them. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Hopefully these tips will be very useful in your endeavors. It might seem impossible, but these steps will almost definitely help your credit score. Remember that it takes time to undo this kind of damage. Determination is key and very worthwhile in the end.