Are you struggling with your bad credit? In a tough economy, most people see their credit score go down. The following tips can help make that score better.

Getting home financing is no small feat, especially if your credit score is less than perfect. Federally guaranteed loans (FHA loans) may be an option. FHA loans offer lower down payments and help with closing costs.

If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. Anyone can get one, but you must load money onto the card as a type of “collateral”. If you show a good history of payments with this card, it will help improve your credit standing.

Financing a home is not always an easy task, especially when you have less than perfect credit. FHA loans are good options in these circumstances, because the federal government guarantees them. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.

If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. 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.

Interest Rate

If you don’t want to pay too much at a time, you can avoid paying higher interest rates than you started with. You may be able to challenge an interest rate that is extremely high. Remember you agreed to pay any interest that accrued over the life of the account. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.

The first thing you need to do before beginning to repair your credit is outline th steps required to do so, then follow those steps without deviation. If you want to change then you have to work hard and stick with it. Purchase nothing but the essentials. 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 are looking into a credit counselor, be sure to find out information about them before you choose to use them. There are some counselors that are real, while others are basically scammers. There are many scams out there. Wise consumers always verify that credit counselors are legitimate before dealing with them.

If your poor credit score frustrates you, try using these tips to change it. The advice from this article can help you turn around your credit situation and come out ahead.