Knowing how much was owed, as well as to whom, could have helped you avoid the downgrading of your credit score. Now you must handle the crisis and fix your credit score. The following advice can greatly help you rebuild your credit rating.
If you don’t have very good credit, financing your home may not be easy. If you are in this situation you should look into FHA loans before speaking with a bank. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
You may be able to get a secured credit card even if your poor credit has prevented you from getting other credit cards. These are extremely easy to qualify for. A secured credit card looks just like a regular card, and works like a regular card, but you have to have the necessary money in an account to guarantee payment. Limited spending and regular payments can turn a new credit account into a valuable credit score improvement tool.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. 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.
It is easy to get a mortgage for a house if your credit score is good. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. Owning your own home also improves your credit score in the form of having large assets to borrow against. This will make taking out future loans much easier.
If you want to boost your credit score and earn a decent living, open an installment account. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. Your FICO score will rise over time, if you responsibly manage this type of account.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. You did sign a contract and agree to pay interest. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.
Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. Sadly, harmful entries remain on your report for roughly seven years. However, information that is not correct can be removed.
Take the necessary steps to fix any mistakes that you see on your credit reports by filing an official dispute. Include proof along with a letter disputing the claim to the agency that recorded the errors. Also include a request for a return receipt to make sure the agency gets it.
If you want to get your credit score looking good, it takes quite a bit of common sense. If you follow this information, you can get to the ultimate goal.