Having a bad credit rating can seriously delay your goals in life. It can rob you of your financial options and prevent you from taking advantage of great opportunities. You can repair it though, and make steps to prevent it from spiraling down further.
If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. Most likely, you will not have a problem obtaining this type of card, but you must add funds to the account before you make any purchases to assure the bank that you will pay. If you use a credit card responsibly, you will go a long way in repairing your credit.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. 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.
You can keep your interest rates lower by working to keep your credit score as high as possible. This should make your monthly payments easier and allow you to pay off your debt much quicker. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
With a good credit score, you can easily buy a house and mortgage it. Paying mortgage notes on time will keep your credit scores high. The more equity you have in your home, the more stability the banks see in you. This is helpful in case you want to borrow money.
If you want to avoid giving too much to your creditor, simply refuse to pay towards unfairly huge interest rates. In many situations, exorbitant fees and penalties can be challenged. However, you agreed to pay the interests off when you signed the contract. You need to be able to prove the interest rates are too high if you want to sue your lenders.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. Negative info stays on your history for seven years! You can erase information that is incorrect from your credit record.
If you are looking into a credit counselor, be sure to find out information about them before you choose to use them. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Some are simply fraudulent and are out to get your money. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
These tips will make a big difference in your fight against bad credit. Having a good credit score is crucial to getting the best interest rates possible and is definitely worth the effort.