If you knew how much you owed and who you owed it to, you may have been able to avoided bad debt entirely. There is no better time than now to work on repairing past mistakes that can be adversely affecting your credit rating. The following advice is easy to follow and can help you repair your credit score.
Credit Card
When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. Responsible use of any credit card can help your credit rating. However, never forget that irresponsible use will get you in trouble every time.
Financing a new home can be a challenge, especially if you have a history of bad credit. If you are in this situation you should look into FHA loans before speaking with a bank. FHA loans can even work when someone lacks the funds for down payment or closing costs.
Keep your credit card balances below 50 percent of your credit limit. 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.
Getting an installment account can help you earn money and provide a boost to your credit. Make sure that you are able to afford the payments on any installment accounts that you open. You can quickly improve your score by successfully managing these accounts.
Credit Score
If credit repair is something you are investigating and a company has told you they can strike true, but negative, information off of your credit report, they are lying. Regardless of their claims, these debts will stay on your report for seven years at a minimum. Incorrect information may be erased though.
One of the first steps of improving your credit score is ensuring that your bills are always paid. More specifically, pay them on time and in full. You will notice how quickly your credit score increases when you start paying off those overdue bills.
Make sure you do your research before deciding to go with a particular credit counselor. While there are lots of counselors with your best interest at heart, there are others who just want your money. Other programs, while they sound good, are complete and total scams. A wise consumer will find out if the credit counselors they deal with are legitimate or not.
Be wary of credit restoration scams that can get you in legal trouble. You should steer clear of internet programs that show you how to clear your credit. Doing this is illegal, and you will be caught. Legal repercussions will cost you a lot of money, and you could go to jail.
The first step to repairing your credit is paying what you owe. You should pay your bills in full each month. Do not let them fall behind again and get yourself in trouble. Getting rid of past-due bills will have a fast and dramatic effect on your credit score.
Repairing your credit rating and cutting down your debt involves a lot more common sense than anything else. You can find those waters by sailing with these tips.