Does your credit report keep you awake? By following the tips in this article you can get things back on track, and finally have a credit score that makes you proud.
Getting home financing is no small feat, especially if your credit score is less than perfect. Look into alternative financing options like FHA loans. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
If your credit card has a balance of over 50% of your limit, it should be your number one priority to pay it off until the balance is under 50%. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.
A lower credit score can get you a lower interest rate. Lower interest rates will reduce the amount of your monthly payment, and can also make it easier to repay your debt faster. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.
If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. When a creditor hits you with incredibly high interest rates, you may have a case for negotiating to a lower amount. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
Before consulting a counselor for credit restoration, do your research. Some credit counselors offer real help while others have more dubious things in mind. Some are not legitimate. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.
Do not try something that you do not know is legal or illegal. The web is full of scams that show you how you can craft a deceptive credit file. Do not think that you can get away with illegal actions. Legal ramifications can cost a lot, and you may go to jail.
Call each of your charge card companies and ask them to lower the limit on them. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
If you notice credit reporting errors, always file a dispute. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Sending your letter by certified mail provides you with proof that the letter was received.
Take the time to ensure each month’s credit card bill is correct. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.
If you and your creditor decided to set up a payment plan, you should first get the details of the plan in written form. Having documentation is important for your records but also protects you in case a creditor changes their mind. Once you finish making all your payments, be sure to send that information to the credit agencies in writing.
With the application of this advice, you do not have to be haunted by your poor credit report. You do have the ability to fix your credit. If you can apply all these tips, you will have a great credit score.
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