With all of the problems presented by a bad economy, low credit scores are a more common problem than ever. These tips will help you get a healthier score.

TIP! If you can’t get a normal card due to low credit score, look into a secured card. The account is funded in advance, which provides the lender with a level of insurance against unpaid debts.

If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If you are in this situation you should look into FHA loans before speaking with a bank. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.

TIP! Keep your credit card balances below 50 percent of your credit limit. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.

Paying your bills is something you need to do to repair your credit. More precisely, you must begin paying your bills fully and on time. Your credit score starts to improve immediately upon paying off some of your past due bills.

TIP! If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. You may be able to challenge an interest rate that is extremely high.

Credit counselors should always be researched thoroughly before being consulted for credit restoration. While some counselors are legitimate, offering genuinely helpful services, others have ulterior motives. Some credit services are nothing more than fly-by-night scams. You should research any counseling service you are considering prior to initiating communications with them.

Debt Settlement

TIP! Check any negative items on your reports carefully when you begin fixing your credit. Even if the negative report is true, if you can locate an error in the report, it may be possible to get it removed.

Before you sign any debt settlement, research what effects it will have on your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Some creditors have no concern over how your credit score can be affected by entering into certain agreements. These people just want your money.

TIP! It is crucial that you review credit card bills on a monthly basis to check for errors. Should there be any mistakes, contact the company and talk to them to avoid being reported to the credit companies.

You should examine any negative entries on your credit report thoroughly if you want to fix your credit problems. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.

TIP! If at all possible, avoid filing bankruptcy. It can adversely affect your credit for up to 10 years.

If you come across a mistake on your credit report, don’t hesitate to dispute it. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Always send your dispute letters certified mail, so that you can get return confirmation. This will give you proof that the agency received your dispute paperwork.

Credit Card

TIP! You will be able to keep up with your bills, and get a good credit score. Late payments are added to credit reports and they can damage your chances of getting loans or a home in the future.

Shut off all but one credit card if you want to fix your credit. Transfer credit card balances to one card for loan consolidation. By doing this you can make your bills more manageable. Instead of a mailbox full of credit card bills, you will only have one.

TIP! Collection agencies are stressful to deal with. Consumers can legally issue letters to collection agencies to cease and desist if they are being harassed.

Bankruptcy should be filed only if absolutely necessary. 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 choose to file bankruptcy, you’ll be unable to get a credit card or loan in the future.

TIP! Be aware that threats made by a bill collector are illegal. There are laws that protect consumers, and it is important to know them.

Don’t put off until tomorrow what you can do today, especially now that you are armed with the necessary tools to put a plan into motion. Use this information to help increase your credit rating.