Now it is time to figure out how to resolve the crisis and create a better future. The following advice can help you rebuild your credit rating.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. If possible, apply for an FHA loan; these loans are backed by the United States government. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
If you have a poor credit history and can’t qualify for a credit card, try to apply for secured cards. If you show a good history of payments with this card, a new card can help you fix your credit.
Try opening an installment account to get a better credit score and make some money. You will improve your score by properly managing these accounts.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. Many counselors are honest and helpful, but others may be less interested in actually helping you. Some are not legitimate. Before you conduct any business with a credit counselor, check into their legitimacy.
You must pay your bills off on time; this is very important. Your credit score starts to improve immediately after you pay the bills that are past due bills.
You need to work with your creditors when you are trying to improve your credit.This will help you to make sure to keep your situation and keep you from getting even further behind.
Close all your credit cards except for one as a means of repairing your credit. You may be able to transfer balances to your remaining account. Paying off one main credit card will be easier than paying off several cheaper ones.
Make sure you check out any credit counseling agency or counselor before you do business with them. Many counselors are honest and helpful, so make sure you are not being duped. Some credit services are just people trying to scam you.
Do not do things which could cause you end up in jail. There are scams all over the web that will show you how to create a brand new credit profile. Do things like this can get you will not be able to avoid getting caught. You may end up in jail time.
Try to use credit cards only for purchases you can afford to pay off. Instead use cash for all your purchases. When you find credit card spending unavoidable, pay down your balance immediately.
Contact your creditors to request a reduction in your credit limit. 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.
Even if the negative report is true, if you can locate an error in the report, then you may be possible to have it removed from your credit report.
Build your credit back up to repair it. Consider a card that requires payment in advance; this will improve your score without the risk of failure. This will show potential lenders that you are responsible and credit worthy.
Joining a credit union may be helpful if you want to work on improving your credit score.
Do not use credit cards to pay for things that you can afford. You will have to change the way you think about spending money. In the not too distant past, easy credit has made it very fashionable for people to purchase the things that they cannot afford, but now the economy is paying the price of those days. Be honest with yourself about what you can afford.
Be aware that threats made by a bill collector are illegal. Laws which protect debtors exist, and it’s vital that you understand them.
You should have noticed that the preceding tips have a common theme–they are mostly based on common sense. If you follow this information, you can get to the ultimate goal.