There are many ways that an imperfect credit score can affect your life. When you are dealing with bad choices of your past, it can be frustrating. Rebuilding credit may be challenging, but it is not impossible. Continue on for some helpful credit score repair tips.
For those with imperfect credit, it can be hard to secure financing for a home. If this is the case, try to get an FHA loan, which are loans backed by federal government. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. When balances are over 50%, your credit rating goes down significantly, so try to either spread out your debt or, ideally, pay off your credit cards.
By maintaining a good credit score, you can decrease your interest rate. This will make your payments easier and it will enable you to repay your debt a lot quicker. Take advantage of special offers and favorable interest rates to secure manageable credit payments and a good credit rating.
Credit Card Company
Some sound advice to follow, is to be sure to take the time to contact your credit card company and work with them. This will enable you to make sure to keep your credit in good standing and repair any damage that may have been caused. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.
Do not get mixed up in things that may lead you to imprisonment. There are various online scams that involve creating a fresh credit file. Creating a new credit file is very illegal and you can be easily caught. Taking these short cuts will end up costing you money and could lead to a stay in jail.
Give the credit card companies a call and find out if they will lower your credit limit. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.
Make sure you review all of the negative marks against you on your credit report. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.
If you find inaccuracies on your credit report, make sure to dispute them. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter.
Get a written copy of any payment plan you negotiate with a creditor. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. You also want it in writing if it gets paid off so you can go ahead and send it to credit reporting agencies.
Take the time to carefully go over your monthly credit card statement. Look for any changes that have happened, and make sure they are correct. You do not want to end up paying for a purchase that you did not make. It is only your responsibility to make sure everything is correct and error free.
If you follow the tips in this article, you will see positive results in building your credit score back up. Be consistent and be aware of your obligations. Fixing a credit problem is far from impossible, and the faster you get to it, the better your results will be.