TIP! If your credit history has put you in the position where you are not able to obtain a regular credit card, you should try to get a secured credit card to begin rebuilding your credit. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid.

There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. Fortunately, there are actions you can partake to reverse this.

TIP! Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating.

If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. FHA loans are good options in these circumstances, because the federal government guarantees them. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.

TIP! Opening up an installment account will help you get a better credit score and make it easier for you to live. You should make sure it is an installment account that you will be able to pay into every month.

If credit restoration is your goal, create a plan and stick with it. Make a commitment to making better financial decisions. Don’t buy the things that aren’t needs. Ask yourself whether every purchase is both affordable and necessary, and only buy if the answer to both questions is “yes”.

Credit Card

TIP! Make sure you check out any credit counseling agency you consider using. Some credit counselors offer real help while others have more dubious things in mind.

If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. Most likely, a secured credit card will be easy for you to get, but you have to fund the credit account before you purchase so the bank knows that you won’t miss any payments. Responsible use of a credit card can help rebuild your credit.

TIP! 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.

Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. 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.

TIP! If you are trying to improve your credit score but are having difficulty gaining access to new credit in order to do so, join a credit union. They have opportunities that other banks can’t match since they are local, and don’t have to follow some of the same regulations.

You can get better interest rates on credit cards and loans when you have a good credit score. By lowering your monthly payments, you’ll be able to reduce your debt more quickly. Get a good offer along with good rates, and you’ll have credit that you can pay off easily, and improve your credit score.

TIP! If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. This way you have documentation of the agreement in case the creditor decides to change their mind or ownership of the company changes.

You can easily get a mortgage if you have a high credit score. One way to help improve your credit is to pay your monthly mortgage payments on time. Owning a home shows financial stability, which is great for your credit. A good credit score is necessary when you need to take out a loan.

Interest Rates

TIP! Pay off your entire balance on your credit card in order to repair your credit. Pay off high-interest debt first, as it grows the fastest.

Avoid paying off high interest rates so that you don’t pay too much. Creditors are skirting a fine line of law when they try to charge you exorbitant interest rates. You did sign a contract and agree to pay interest. If you want to sue creditors, you need to state your claim that the interest rates are too high.

TIP! You will be able to keep up with your bills, and get a good credit score. Every late credit card payment can damage your credit score.

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. Unfortunately, negative marks will stay on your record for seven years. It is possible to have erroneous information removed from your report, however.

TIP! Take the time to carefully go over all your credit card statements. You want to double check that all the charges are accurate, and that you are not paying for something you did not purchase.

If you are attempting to raise your score with the credit bureaus, but are encountering road blocks whenever you apply for new credit, then open an account with a credit union. These credit unions can probably give you better credit options in the long run.

TIP! A good way to repair your credit is to begin to build it back up. If you use a credit card that is prepaid you can build up your credit and not have any bad credit reports.

It can seem impossible to repair your credit score, but just knowing what the steps are and making a plan can make it seem much less intimidating. With the tips above, you are better prepared to take action and get your credit situation back where it should be.