Having bad credit can be a real headache. It can be even more stressful when you have to deal with poor past decisions. It is time to take action and rebuild your credit score. Here are some great ideas to get you back on track.
An imperfect credit rating can make financing a home even more difficult than normal. FHA loans might be a good option to consider in these circumstances, as they are backed by our federal government. 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.
The first step in credit repair is to build a plan. You have to stay focused and committed if you want to make concrete changes to your financial situation. Just buy what you need, and forget unnecessary purchases. Put each potential purchase to the test: is it within your means and is it something that you really need?
Any credit cards that have balances over 50% of your limit should be paid off until they are less than 50% of your limit. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.
An installment account is a great way to increase your credit score. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
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. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. However, you signed a contract agreeing to pay off interests. If you want to sue creditors, you need to state your claim that the interest rates are too high.
Make sure to have as low as possible of a credit line available to you. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.
Know how debt settlements will influence your credit score prior to making a decision. There are methods that are going to be less damaging than another, and all should be researched before you enter an agreement with a creditor. The creditor does not care what happens to your credit score, as long as they get their money.
This advice can make a big difference in your credit score. You have to come up with a solid plan, follow it in a consistent way, and make it your priority. It’s definitely possible to repair your credit, so don’t worry and get going!