A bad credit score is a source of stress. It can be even more stressful when you have to deal with poor past decisions. Meanwhile rebuilding your credit may seem like a challenging process, but it is doable. These tips should be able to help you.
If your credit is not perfect, getting a mortgage can be tricky. If you do have poor credit, try to get a FHA loan because there is a guarantee that it will be given to you. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
Opening an installment account is one way to improve your credit score. Choose an installment account you can afford, since you will have to leave a certain amount of money on it at all times. A properly managed installment account will work wonders on your credit rating.
If credit improvement is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Incorrect information may be erased though.
Make sure you do your research before deciding to go with a particular credit counselor. There are some legit counselors, and there are some that have ulterior motives. Some will try to cheat you. You should research any counseling service you are considering prior to initiating communications with them.
Stay cautious and aware of scams online that can lead you to even bigger problems. There are various online scams that involve creating a fresh credit file. Do not think that you can get away with illegal actions. Think of the legal costs and the possibility of doing hard time.
Call each of your charge card companies and ask them to lower the limit on them. 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.
Before agreeing on settling a debt, find out how if the process will raise or lower your credit score. Some debt settlement methods can hurt your credit even more, and you should be sure of how it will affect you. Some of these creditors are only concerned about getting their money, and not how it will affect your credit.
It is crucial that you review credit card bills on a monthly basis to check for errors. If there are late fees you don’t deserve, act as soon as possible to get the matter resolved before it can affect your credit score.
Try not to file for bankruptcy. This negative mark will stay on your report for 10 years. Although it seems like the wise thing to do at the time, it will bring you negative consequences in the long run. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.
Using the tips from this article will make a dramatic improvement towards your credit score. Consistency is crucial with this process, so be sure to stay up to date with your obligations. Clawing back from a credit disaster is doable, so stop making excuses and start today!