Having credit problems is hard enough, but finding information on how to help fix your credit can be harder. We have outlined the best path to repairing your credit in this article just for you. Heed our advice, and you’re sure to lower your stress level.
Having poor credit makes financing a home a nightmare. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs.
Credit Card
If you’re credit needs some work, first you should make a plan you can stick with, and then follow through. You can’t just make up a plan and not change how you spend your money. Only buy what you absolutely need. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.
If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. In order to get the card, you will have to fund the account as sort of an insurance that shows the bank your debts are going to be paid. Using this new credit card in a responsible manner will help to build back up your good credit rating.
If you have credit cards where the balance is more than half of your credit limit, pay these down right away. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
To avoid paying too much, you can refuse to pay off huge interest rates. In most cases, creditors are somewhat limited in the amount of interest they can charge. Although, in reality, you did agree in advance to pay any interest charges incurred. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
When you have better credit, you will be offered lower interest rates on loans and credit cards. Doing this can reduce monthly payments, which will assist you in paying off any outstanding debts faster. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.
No credit score repair company can remove factual information, no matter how damaging, from your credit report. Regardless of their claims, these debts will stay on your report for seven years at a minimum. However, if there is incorrect information, you can have it cleared up easily by yourself.
Use the information presented here to repair your credit. Although credit restoration feels like ‘one step forward, two steps back’, it is worth it. Remember that it takes time to undo this kind of damage. If you keep at it, you’ll see the benefits are great.