Master Your Credit Improvement Through Expert Advice
Do you hate your life because your credit sucks? A lot of credit scores are going down during this difficult economic time. The following tips can help make that score better.
An imperfect credit rating can make financing a home even more difficult than normal. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Credit Score
By keeping your credit score low, you can cut back on your interest rate. This will help you afford your payments, and get out of debt quickly. Quickly paying off your debts is a good way to improve your credit score. This will give you access to more competitive rates in the future.
If someone promises you to improve your score by changing your factual history, this is a scam. This information can stay on your record for about seven years. Know, however, that it is possible to delete information that is actually wrong.
Don’t get involved in anything that could get you arrested. The web is full of scams that show you how you can craft a deceptive credit file. This is illegal and you will eventually be caught. Not only can legal fees add up, but you could end up in jail.
Credit Card Companies
Call and request lower limits on your cards from the credit card companies. This will help you accomplish three things: 1. You will avoid being overextended. 2. Credit card companies will begin to view you as responsible. 3. It will be easier for you to get credit as time passes.
If your credit is poor, take the first step to repairing it by closing out the majority of your cards, leaving yourself just one to use. Try to make a payment or transfer your balance to your open credit account. This can help you avoid paying down smaller balances and focus on paying one card off.
Always get a plan in writing if you are going to do a payment plan that deals with creditors. This way you have documentation of the agreement in case the creditor decides to change their mind or ownership of the company changes. Upon completion of payment, make sure to get the receipt in writing and send it to the credit reporting agencies.
Do everything possible to avoid bankruptcy. This will show up on your credit for around 10 years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. If you do file for bankruptcy, it will be extremely difficult to get approved for a loan or a credit card for many years, if ever.
If a poor credit rating has left you feeling discouraged, turn your situation around by applying the guidelines you have just read. These strategies can aid in stopping your credit score from going down and you will be able to make it go up again.