Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. Luckily, there here are some steps that you can take to turn things around.
Having poor credit makes financing a home a nightmare. See about getting an FHA loan, which are loans that the federal government guarantees. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
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. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
You can receive a better interest rate if you have excellent credit. This will make your payments easier and it will enable you to repay your debt a lot quicker. Getting better interest rates leads to an easily maintainable good credit score.
Getting a reduced interest rate is the easiest way to reduce your overall debt. Creditors who charge exorbitant interest may be just a law suit away from having to wipe the slate clean. However, you did sign an agreement to pay the interest. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
When you’re looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it’s correct, it can not be removed. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. However, if there is incorrect information, you can have it cleared up easily by yourself.
Begin paying your bills to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. Credit unions may be able to offer more credit options or better rates than a larger bank, based on an understanding of the local area rather than the national situation.
If you find any errors on your credit report, you should dispute them. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Repairing a poor credit score can seem like a daunting task, but improving your score is possible with guidance and knowledge. Use what you’ve learned in this article to start fixing your credit and improve your credit score.