If your credit report contains inaccurate information then it will negatively affect your credit score, making it difficult to get any lenders to work with you. D.I.Y credit repair is one of the best ways to improve your credit. Here are some tips for doing so.
Fha Loans
Financing homes can be made more difficult when your credit score is low. Look into alternative financing options like FHA loans. FHA loans are ideal for those who cannot afford the high down payment that most banks require.
There are secured credit cards available if your credit rating is too low to open up a regular credit card account. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. If you use it correctly, a new card can help you fix your credit.
If your credit card is carrying more than half of its credit limit, your first priority should be paying it down until it is below 50%. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
Installment Account
Try opening 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.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. In most cases, creditors are somewhat limited in the amount of interest they can charge. You did sign a contract saying that you would pay off the debt. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Not only must bills be paid, but they must also be paid in full and in a timely manner. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.
You need to work with the companies from whom you have credit cards. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. You can do this by speaking with them and asking to change the monthly charges or due date.
Credit Counselors
When trying to repair your credit, research any credit counselors you consider using very thoroughly. Many counselors are honest and helpful, but others may be less interested in actually helping you. Some will try to cheat you. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.
Do not do anything that will make you end up in jail. There are less than honest entities that will show you how to make a brand new credit file. This tactic is not legal, and you face serious repercussions if you are caught. Penalties can include large fines and possibly even incarceration.
Before going into debt settlement, find out how it will affect your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. Some are out there just to take your money; they don’t care about your rating.
By now, you should be encouraged to know that there is much you can do to help repair your bad credit. By following the advice given in this article, your credit score should improve. With determined personal effort, you will be on your way to seriously improving your credit standing.