With so many people today suffering from the current economic conditions, millions of people have found themselves with negative marks on their credit. Luckily the tips provided here are useful ways to get your credit score looking healthy once again.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If this is the case, try to get an FHA loan, which are loans backed by federal government. Some FHA loans even cover a down payment or your closing costs.
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. Using this card responsibly will improve your credit rating over time, and eventually you’ll be able to get a normal credit card again.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. However, you agreed to pay the interests off when you signed the contract. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
No credit improvement company can remove factual information, no matter how damaging, from your credit report. Negative info stays on your history for seven years! However, information that is not correct can be removed.
Credit counselors should always be researched thoroughly before being consulted for credit score repair. There are some counselors that are real, while others are basically scammers. Some companies you may find are outright scams. Before you conduct any business with a credit counselor, check into their legitimacy.
Ask credit companies to lower all of your card limits. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.
Make sure you review all of the negative marks against you on your credit report. The item may be essentially correct, but there may be an error someplace. If the date or amount, or some other thing is incorrect it may be possible to get the entire item removed.
If you find any errors in your credit reports, you should dispute them. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Ask for a return receipt so that you can prove that the agency got your package.
Check your credit card carefully each month to ensure that there’s no incorrect information. You must get in touch with your credit card issuer as soon as you spot an error to make sure that it is properly handled and does not result in any negative reporting.
Do everything you can to avoid bankruptcy. Bankruptcies appear on credit reports for ten years. It may sound like a good idea at the time to rid yourself of all your debt, but it will affect you later on. You may never get a line of credit for any purchases you might need to make if you go ahead, give up on repairing your credit and file for bankruptcy.
Pay the balances on all credit cards as soon as you can to start the credit repair process. Begin by paying down those credit cards that carry the highest interest rates or the highest balances. Doing so shows your creditors that you are taking your debt problem seriously.
Now that we have gone over the different ways you can go about repairing credit, why not get started now? Put this advice to work for you immediately to start cleaning up your credit report before your poor credit rating negatively impacts your life any further.