Poor credit is a terrible thing for you to deal with as you journey through life. It can take take away choices and stop you from enjoying wonderful opportunities. However, a few simple steps can be taken back in the direction of a good score.
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. These types of credit cards often require a good faith deposit to open a new account. Responsible use of a credit card can help rebuild your credit.
If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
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 a good option regardless of your down payment amount or funds available for closing costs.
Credit Score
If you want to boost your credit score and earn a decent living, open an installment account. You are required to meet a monthly minimum, so be sure that you can make the payments. Paying on time and maintaining a balance will help improve your credit score.
Paying off any debts you have that have high interest rates can help you to avoid paying too much. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Remember that you agreed to pay that interest when you signed the contract. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
If you have to improve your credit, make a solid plan and follow it. If you want to change then you have to work hard and stick with it. Avoid buying what you don’t need. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
Paying your bills is something you need to do to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.
Put these ideas to use so you can repair your credit and stay on top of good credit practices. Because a good credit rating is important in so many financial transactions, the time you spend learning about credit restoration is well-spent.