Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. The good news is that there are some things that you can do to repair it.
Secured Credit Card
Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. When you open a secured credit card account, you place money on deposit to cover any charges you may make. This ensures in advance that you will have enough money to pay for your debt. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Getting home finance can be quite tough when your credit rating is not good. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. You may even qualify for an FHA loan if you don’t have enough money for a down payment or the closing costs.
If you make a decent income, consider an installment account when you want to give your credit score a boost. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. If you use these accounts, your score will go up rapidly.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. Your initial agreement likely included a commitment to pay interest. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
A secured credit card might be a good option for the person with a poor credit score. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. A responsibly used new credit card will begin healing your credit score.
Working closely with the credit card companies can ensure proper credit restoration. This will assure them that you want to handle your debt and keep you from getting even further behind. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.
Repairing the credit you damaged might seem overwhelming, but you can fix your credit with effort and the right kind of information. The advice offered in this article can help to get you back on track to repairing your credit.