Credit Repair Tips And Tricks You Must Know
Posted at by CreditWiz on category CreditAre you kept awake thinking about your credit report? By following these tips, you can achieve a credit report that you do not have to be ashamed of.
Having poor credit makes financing a home a nightmare. You should consider getting a FHA loan they are backed by the government. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Having a lower credit score can lower your interest rate. This can help lower your monthly payments, and help you pay them off quicker. It’s important to look for a strong credit offer with competitive rates; it will make paying off your debt and keeping a strong credit score much easier.
Opening an installment account can give quite a boost to your credit score. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. You will improve your credit score by properly managing an installment account.
Call each of your charge card companies and ask them to lower the limit on them. This will stop you from racking up giant credit card bills, and show lenders you are responsible.
In order to get a hold on your credit, focus on closing all accounts except one. It is important to make small payments or transfer a balance to the open account. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. If there is a change of heart, this paper will protect you. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.
High credit card balances can damage your credit. The first step to repairing credit is to pay those balances down. It is a toss up as far as which cards are best to pay off first – some choose ones with the highest interest rate, others choose the card with the lowest balance. This will show future creditors that you take your debts seriously.
Making your payments on time shows lenders that you are serious about maintaining good credit. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.
Go through all the statements you receive. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase. You need to be sure that everything is correct on the statements.
For a better credit rating, lower the balances on your revolving accounts. Your credit score can go up if you just bring your balances down. The FICO system will make a note when the balances are at 20, 40, 60, 80 and 100 percent of the total credit available.
As you can see, your credit report no longer has to play the lead role in your worst nightmares. When you face your fears about your credit, you can get started on fixing it. If you can apply all these tips, you will have a great credit score.
