Whether you fell prey to the guys handing out credit cards like candy on campus, went shopping too many times or suffered from the bad economy, you probably did some damage to your credit. The following tips will help you can do to repair it.
Getting home financing is no small feat, especially if your credit score is less than perfect. Try to secure an FHA loan; these are federal government guaranteed. Some FHA loans even cover a down payment or your closing costs.
If your credit card is carrying more than half of its credit limit, you should pay it down to below 50%.
Credit Score
No credit repair company can remove factual information, no matter how damaging, from your credit report. Negative info stays on your history for seven years! Incorrect information may be erased though.
A great credit score should allow you are more likely to get financing for a mortgage on the house of your dreams. Making regular mortgage payments will also help your credit score even more. This is helpful in case you need to take out a loan.
You should always make an effort to pay your bills on time; this is very important. Your credit score starts to improve 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. If you do this you’ll find that your debt doesn’t increase and your credit is improved. You can accomplish this by simply calling and asking them to change payment terms, like your interest rate or your billing date.
Do not get mixed up in things which could cause you to go to jail. There are many different places that claim they can help you get a new credit file. Do things like this can get you will not be able to avoid getting caught. You could go to jail if you are not careful.
Contact your creditors and see if you can get them to lower your credit line. Not only will this prevent you from owing more, but it can also imply that you are responsible to those companies and to any future companies.
If you see any erroneous information on your credit report, file a dispute so you can have the information removed. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Send your dispute package with a return receipt request so that you have proof that it was received by the agency.
Some ways of dealing with debt repayment are better for your credit score than others, so it’s important to check into your options and find one that won’t hurt you in the long term. Creditors are only trying to get the money that you owe them and really aren’t interested on how it will affect your score.
Even if the item itself is correct, any small mistake in the item, like the date or the amount owed, may let you have the whole thing taken off your credit report.
Paying your credit cards on time keeps you in good standing on your credit report. Late payments to credit cards are reported to the major credit agencies and can hurt your chances for securing a new loan.
Joining a credit union may be helpful if you want to make your credit score better but cannot get new credit.
Dispute any errors that you identify on your credit reports.
When you create a new credit source, your score decreases. Don’t be tempted to get a new credit card even if it promises you discounts at stores. If you continue to increase your debt, your credit score will continue to drop.
Do not use credit cards to pay for things that you can afford. You will have to change the way of thinking in order to do this correctly.In many cases, credit was easy and people could stretch themselves too far, but now the economy is paying the price of those days. Be honest with yourself about what you can afford.
With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. Apply the information you learned within this article to help you recover your credit score.
Paying all of your bills in a timely manner is a vital component of determining your credit score. You are more likely to remember your payment due dates if you have some kind of reminder system set up. There are lots of ways in which you can make payment reminders. You can set it up through online banking, a calendar or an email reminder.