Is Your Credit Bad? You Can Fix It

| August 21, 2013 | 0 Comments

Errors that are in your credit report can hurt your credit rating and may make it difficult to get yourself new credit. Repairing your credit yourself is the surefire way to getting your financial life back on track. Research the variety of options you can use to improve your credit rating.

An imperfect credit rating can make financing a home even more difficult than normal. If possible, apply for an FHA loan; these loans are backed by the United States government. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.

TIP! Financing a home is not always an easy task, especially when you have less than perfect credit. See about getting an FHA loan, which are loans that the federal government guarantees.

If you want to fix your credit, you must first conjure a workable plan that you can stick to. Make a commitment to making better financial decisions. Limit your purchases only to things that are absolutely necessary. Only buy something if you have to have it and you can afford it.

Credit Limit

If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.

TIP! Develop a plan that works if you are in need of credit repair. If you want to change then you have to work hard and stick with it.

Think about getting an installment account to save money and improve your credit score. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. You will improve your credit score by properly managing an installment account.

Start Paying

In order to start repairing your credit, you need to start paying your bills. You need to pay your bills off on time; this is very important. As soon as you start paying off your bills so that they are not late, your credit score will immediately start going up.

TIP! Pay down the balance on any credit card that is 50% or more of the credit limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.

Before consulting a counselor for credit score improvement, do your research. There are some legit counselors, and there are some that have ulterior motives. Many others are nothing more than scams. To help protect yourself from fraud, investigate any credit counselors. One way to check an agency out is to check with the Better Business Bureau.

Read your negative reports carefully when attempting to rebuild your credit. While the credit item itself may not be in error, if you can find a mistake in the date, amount, or any other factor, you may be able to have the whole item removed from your report.

As shown here, you can do a number of things to help repair your credit and get back on solid footing again. Try implementing just a few of these tips, and see how your credit score rises as a result. Financial stability will be yours again, as you work hard to rebuild your own credit future.

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Category: Finance

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