With all of the problems presented by a bad economy, low credit scores are a more common problem than ever. These tips can save you from that and improve your credit score.
Getting home finance can be quite tough when your credit rating is not good. 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 can even work when someone lacks the funds for down payment or closing costs.
Try to keep a balance of less than 50% of your available credit on all of your cards. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
If your creditors try to jack up your interest rates, do not pay them. There are laws that protect you from creditors that charge exorbitant interest rates. On the other hand, you’re likely bound by a contractual agreement to pay any interest charged by lenders. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
If you are looking to repair your credit, then you should not believe a company if they promise they can remove negative information from the report. Specifically if this information is correct. Negative info stays on your history for seven years! You can, however, succeed at having incorrect information erased from your credit reports.
You must pay your bills consistently if you want to repair your credit. More specifically, pay them on time and in full. You will notice an improvement in your credit score pretty quickly after paying off some past debts.
Before consulting a credit counseling agency, be sure to check out their background and history. There are some counselors that are real, while others are basically scammers. Other options are clearly scams. Before you conduct any business with a credit counselor, check into their legitimacy.
Don’t attempt to fix your credit in a way that will result in you breaking any laws. Scams abound on the internet that show you how to change your credit file. Needless to say, this is against the law and you are likely to get caught. Not only can legal fees add up, but you could end up in jail.
Sign up with a credit union if you need to get a new credit line and are having a hard time. Credit unions are normally located in communities and offer lower interest rates than national banks.
If you find any errors on your credit report, you should dispute them. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Ask for a return receipt so that you can prove that the agency got your package.
If you have bad credit, have your credit cards merged into one single account. You will want to either transfer your balances onto the one remaining card or set up payment arrangements, but close the account to new charges. This can help you avoid paying down smaller balances and focus on paying one card off.
Use these tips to establish a plan of action for your credit score. Before your low credit score begins to adversely affect your life, use the information from this article to gradually increase your overall credit rating.