Tips For Dealing With Your Bad Credit History

Bad credit is one of the most irritating potential detours you can encounter on your journey through life. A bad credit score will make it hard for you to get a loan or apply for housing, among other things. There are a few things you can do to improve and protect your credit.

Financing homes can be made more difficult when your credit score is low. Try to secure an FHA loan; these are federal government guaranteed. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.

If you credit score is good, you should have no problem purchasing a house and obtaining a mortgage. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. The more equity you have in your home, the more stability the banks see in you. This will be useful in case you need to borrow money.

If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. If you are able to keep up with one of the accounts, you should see your credit score improving quickly.

If a company promises that they can remove all negative marks from a credit report, they are lying. These things are, generally, on your record for seven years. It is possible to have erroneous information removed from your report, however.

Stay cautious and aware of scams online that can lead you to even bigger problems. There are schemes online that will show you how to establish an additional credit file. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. The legal costs can cripple you, and there is a very good chance you will be sent to jail.

If you notice credit reporting errors, always file a dispute. Send an official letter to companies that have wrongfully lowered your score, and include documentation that shows the mistake. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.

Taking time to examine your monthly credit card bill is critical to ensure that there are no errors. If such fees are present, you need to get in touch with the credit card company right away to avoid adverse action.

If a creditor agrees to give you a payment plan, get that payment plan in writing. This will protect you should the company change its policies. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.

Doing this will ensure that you keep a solid credit score. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.

Try and pay down any revolving account balances in order to boost your credit score. Your credit score can be raised just by reducing your balances. The Fair Isaac Corporation, FICO system tracks how much of your available credit you are using in 20 percent increments.

When lenders are looking at your credit, an explanation that goes with the report generally will not even be looked at. It can actually backfire. It brings attention to a part of your report you would rather a lender not look at very closely.

Following these simple tips can help you get on the road to repairing your credit and keeping it healthy. Having a good credit score is crucial to getting the best interest rates possible and is definitely worth the effort.

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