TIP! If you don’t have very good credit, financing your home may not be easy. If possible, apply for an FHA loan; these loans are backed by the United States government.

Bad credit is a particularly troublesome life problem that can haunt you for years. It can limit opportunities and deny you of financial options. However, a few simple steps can be taken back in the direction of a good score.

TIP! If you have a poor credit history and can’t qualify for a credit card, get a secured card. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back.

Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. Most people are able to get this type of card, but you will have to load it up with a prepaid amount of money, as a guarantee that you can pay any charges that you make. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.

TIP! Improve your credit score, as well as make some profit, through an installment account. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it.

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 want to avoid paying a lot, you can pay off debts that have a huge interest rate. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate.

You can receive a better interest rate if you have excellent credit. This will help you afford your payments, and get out of debt quickly. Getting better interest rates leads to an easily maintainable good credit score.

TIP! When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. Negative info stays on your history for seven years! You should know that mistakes and anything incorrect can be removed from your credit report.

You will be able to buy a house and finance it if you maintain a good credit rating. You can improve your credit by paying your mortgage on time. Owning a home shows financial stability, which is great for your credit. This will be useful in case you need to borrow money.

Interest Rates

TIP! Don’t do anything illegal. Scams abound on the internet that show you how to change your credit file.

If your creditors try to jack up your interest rates, do not pay them. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.

TIP! Call and request lower limits on your cards from the credit card companies. Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.

Work closely with all of your creditors if you are aiming towards repairing your credit. You should contact the company and request a lower interest rate or a due date change if necessary. This can be accomplished by negotiating with them for a change in due date or monthly charges.

TIP! Don’t sign a debt settlement contract until you know what impact it is going to have on your credit score. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement.

Make sure you research a credit counselor before you visit them. Many counselors are honest and helpful, but others may be less interested in actually helping you. Other programs, while they sound good, are complete and total scams. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.

Use these and other tips to improve and maintain a credit score. The time you invest educating yourself regarding credit repair is worth every minute.