Struggling With Poor Credit? Here’s Some Help!
Is your credit terrible? The advice provided here will help you fix your credit and ease your mind.
For some it may hard to finance their home due to having less than ideal credit. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
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. Although, in reality, you did agree in advance to pay any interest charges incurred. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
No credit score repair company can remove factual information, no matter how damaging, from your credit report. Unfortunately, negative marks will stay on your record for seven years. It is possible to have erroneous information removed from your report, however.
Begin Paying
It’s vital that you actually begin paying the bills that you have if you want to improve your credit. More precisely, you must begin paying your bills fully and on time. Your FICO score will begin to increase immediately after you pay the bills that are past due.
When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. Doing so will help you to ensure that you do not go further into debt and make your credit worse. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.
Give your credit card company a call and ask them to lower your credit limit. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should.
Officially dispute any errors you find on your credit reports. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
If you are currently spending more than you earn, you need to quit that immediately. You will need to change the way you think about spending money. Getting credit has never been easier, making it just as easy for people to buy items they simply can’t afford. This, though, comes with a hefty interest price tag. Be sure to assess your finances and find out the things that you can afford.
Credit Card
Shut off all but one credit card if you want to fix your credit. You can transfer all of your balances to one credit card, ensuring you choose the one with the lowest interest rate. Instead of paying several smaller credit card bills, you can work to pay off one credit card.
Avoid filing for bankruptcy. Bankruptcy will be noted on the credit report for 10 years, afterwards you must rebuild from scratch. It may seem like the right things to do, but your future will be affected. Though it may provide some immediate relief, be aware of how it will impact your access to credit in future years.
High credit card balances can damage your credit. The first step to repairing credit is to pay those balances down. You should first work on paying down the credit cards with the highest balance or interest rates. This builds the positive credit history that creditors like to see.
To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Make sure the charges on your credit cards are accurate. You are the person responsible for checking that there are no errors.
As you apply the advice you have read here, your credit report will change from a source of stress to a source of pride. Start on your way to better credit with confidence. If you can apply all these tips, you will have a great credit score.