Having a poor credit score is among the most frustrating situations that takes the fun out of life. It can make you feel like you are in debtors’ prison with no hope of escape. But, you can fix your credit in a few simple steps and protect it for the future.
If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. If this is the case, try to get an FHA loan, which are loans backed by federal government. If you do not have a down payment or money for closing, consider a FHA loan
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. Credit card balances are among the factors taken into account when determining your credit score. Maintaining balances over 50% will lower your rating. You can attain lower your balances by using balance transfers to move debt from accounts with higher balances to those with lower balances, or by simply paying off some of your higher balances.
By opening an installment account, it could help improve credit score and you could have a decent living. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. If you use these accounts, your score will go up rapidly.
When trying to repair your credit, research any credit counselors you consider using very thoroughly. Many may have ulterior motives, so make sure you are not being duped. Some credit services are nothing more than fly-by-night scams. Before you conduct any business with a credit counselor, check into their legitimacy.
Do not do things which could cause you to go to jail. A common scam involves teaching you how to make a completely new, albeit fraudulent, credit file. Creating a new credit file is very illegal and you can be easily caught. The legal consequences are expensive, and you might be sentenced to jail.
Before you agree to settle your debt, you need to know how your credit will stand afterwards. Some agreements cause less damage to your credit score than others, and each should be considered prior to making an arrangement with a creditor. Some are out there just to take your money; they don’t care about your rating.
Check any negative items on your reports carefully when you begin fixing your credit. Even though the particular credit item may not accurate, finding an error in the amount, date, or something else can cause the entire item to be stricken from your report.
To keep your credit in good standing and get a better score, maintain a low balance on revolving accounts. Having a lower balance will boost your credit score. When balances reach anywhere from 20-100% of your available credit balances (in 20% intervals), the FICO system will make a note.
Easy tips, like the ones in this article, will help you repair your credit and keep it healthy in the future. Credit rating affects your life in many ways, so make sure to learn all you can about it.