Does your credit report keep you awake? The helpful advice in this article will help you find a plan to transform your credit report into one you will be proud of.
Financing a home can be difficult if you have bad credit. Try to secure an FHA loan; these are federal government guaranteed. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
If you need to repair your credit, the first step is to come up with a workable plan and stick to it. Be totally committed to changing your spending habits. You should only purchase the necessities, and skip the impulse buying. Put each potential purchase to the test: is it within your means and is it something that you really need?
Pay down the balance on any credit card that is 50% or more of the credit 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.
If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. Creditors are skirting aspects of the law when they hit you with high interest rates. However, you have entered into a legal agreement that requires you to pay accrued interest. The only way you are legally able to sue the creditors is if you are able to prove that your interest rates are much too high.
If credit repair 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. This information can stay on your record for about seven years. It is true, however, that you can remove inaccurate information from your report, but you do not need the assistance of a consultant to do so.
Don’t risk prison. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Doing this is illegal, and you will be caught. The legal consequences are expensive, and you might be sentenced to jail.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. Any mistakes, such as in the amount owed or the date the agreement was entered, could result in the removal of the entire negative trade line on your credit report.
Try joining a credit score if you’re still struggling to boost your credit rating by opening new lines of credit. These credit unions can probably give you better credit options in the long run.
Dispute any errors that are on your credit report so they are removed. Report any errors to the three credit reporting agencies. Be sure to include any documents to support your case. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
Now you know that your bad credit doesn’t have to give you nightmares. You don’t have to be afraid of your credit score; you can improve it. You can greatly improve your your credit report if you adhere to the tips within this article.