There are many ways that an imperfect credit score can affect your life. It is much more frustrating when you’re reminded of bad decisions you made in the past. Although getting your credit back up to speed can be difficult, there is no reason why it cannot be done. Here are some great ideas to get you back on track.
Financing a home can be difficult if you have bad credit. FHA loans are good options in these circumstances, because the federal government guarantees them. Even if an individual does not have money for the down payment to purchase real estate or pay closing costs, FHA loans may still work.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
If your debt includes large amounts for interest charges contact the debt collector and see whether you can pay the original debt and avoid some of the additional interest charges. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. You did however sign a contract that agrees you will pay off all interests as well as the debt. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.
Paying your bills is a straightforward, but truly vital prerequisite for credit score improvement. To help your credit, you should be paying the full amount owed within the time allowed. Once you start paying your past bills off, you will notice an immediate improvement in your credit.
Before consulting a credit counseling agency, be sure to check out their background and history. While there are lots of counselors with your best interest at heart, there are others who just want your money. Others are outright scams. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
Give your credit card company a call and ask them to lower the limit on your credit card. This will keep you living within your budget, and will show the credit companies that you repay debts. This will allow you to get credit easier in the future.
You should look over all negative reports thoroughly when attempting to fix your credit. Even if the item itself is correct, any small mistake in the item, such as an inaccurate date or amount, may let you have the whole thing taken off your credit report.
If you find inaccuracies on your credit report, make sure to dispute them. Send a dispute letter along with supporting documents to the credit agency that recorded the errors. Send any correspondence by recorded mail to ensure proof of receipt by the agency.
If you have bad credit, have your credit cards merged into one single account. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.
Make sure to review your credit card statement monthly to make sure there are no errors. If you spot any late fees, immediately contact your credit card company. This can save you from having late payments reported to the credit reporting agencies.
Many times you and your creditor can work together to come up with a prepayment plan. If so, be sure you get a written agreement stating the terms. Any plan that you agree on should be put in writing and signed by both parties to protect you in the future. After you have paid your debt, request appropriate documentation that confirms your zero balance.
You have a long way to go to get the credit score you want from the advice you got here. Just keep in mind that credit repair is an ongoing process that you need to stay involved in. There’s no better time than now to start tackling your credit issues!