Is your low credit score holding you back? In the current economy, it’s not uncommon to see credit scores quickly declining. You can make your credit score better by following the tips in this article.
If you have a poor credit history and can’t qualify for a credit card, get a secured 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. Responsible use of a credit card can help rebuild your credit.
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%. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.
Financing a new home can be a challenge, especially if you have a history of bad credit. Look into alternative financing options like FHA loans. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
Interest Rates
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. 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. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
Make sure you check out any credit counseling agency you consider using. The industry is rife with fraud and people with ulterior motives, so finding a legitimate credit counselor can be challenging. Other programs, while they sound good, are complete and total scams. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
If you can’t get a normal card due to low credit score, look into a secured card. This card will be more than likely be granted to you, however you must fund the account ahead of your purchases as a sort of “insurance” to the bank that your debts will be paid. If you get a new card and use it responsibly, it will help to improve your credit score.
Don’t attempt to fix your credit in a way that will result in you breaking any laws. There are many different places that claim they can help you get a new credit profile. Do not attempt this because it’s illegal; you will not be able to avoid getting caught. The legal proceedings will be costly, and you may even be sent to jail.
Requesting that your credit card limits be lowered can benefit you. It will help to keep spending under control, and also sends a positive message to potential lenders. This means you might have a better opportunity of obtaining necessary loans in the future.
If you and a creditor agree on a payment plan, make sure the agreement is committed to paper. Any plan that you agree on should be put in writing and signed by both parties to protect you in the future. When the debt is eventually paid or settled in full, you should request documentation of this and forward copies to the primary credit reporting companies.
You may be able to reduce interest rates by maintaining a favorable credit rating. This will make your payments easier and it will enable you to repay your debt a lot quicker. Quickly paying off your debts is a good way to improve your credit score. This will give you access to more competitive rates in the future.
Credit Score
If you felt bad about your credit score, use these strategies to change that. These strategies can aid in stopping your credit score from going down and you will be able to make it go up again.