It is stressful to have low credit since it stops you from doing important things. Poor financial decisions from years ago can continue to influence your financial well-being in the present. Rebuilding a good credit score is an uphill climb, but the trail does exist. These tips should be able to help you.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Credit Card
Start by paying off credit cards with accounts 50% over your limit. You can concentrate on another card once these accounts are lowered to under half of your limit. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.
Good credit scores mean you can easily qualify for a home or car loan. You can improve your credit by paying your mortgage on time. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. This will make taking out future loans much easier.
Improve your credit score, as well as make some profit, through an installment account. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.
You can dispute inflated interest rates if you are being charged more than you should be. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. You did however sign a contract that agrees you will pay off all interests as well as the debt. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
If you follow the advice in this article, you will be on the right track to rebuilding your credit score. The most important thing is to be consistent with the process and make sure that you stay on top of your obligations. It is time to put some time and efforts into this project. Keep in mind that you will be rewarded.