2
You Can Repair Your Own Credit With These Tips Bad credit affects every financial transaction you make. You have doubtless experienced the downside of a low credit score. Current economic conditions are affecting a lot of people's credit. There are, however, ways to better it, so be sure to read these tips to repair it. Financing a new home can be a challenge, especially if you have a history of bad credit. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. FHA loans offer lower down payments and help with closing costs. If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state of your credit, applying for a secured credit card is an option. These types of credit cards often require a good faith deposit to open a new account. By using a new card responsibly, your credit rating will start to increase. Pay down the balance on any credit card that is 50% or more of the credit limit. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can. A great credit score should allow you to get a mortgage on the house of your dreams. One way to help improve your credit is to pay your monthly mortgage payments on time. The more equity you have in your home, the more stability the banks see in you. This will be beneficial when you apply for loans. Credit restoration requires that you begin paying your bills. You need to pay your bills off on time; this is very important. Your credit score starts to improve immediately upon paying off some of your past due bills. If you are trying to repair your credit, check all of your negative reports very carefully. The item may be essentially correct, but there may be an error someplace. If the date or amount, or some other thing is incorrect it may be possible to get the entire item removed.

You Can Repair Your Own Credit With These Tips

Embed Size (px)

Citation preview

Page 1: You Can Repair Your Own Credit With These Tips

You Can Repair Your Own Credit With These Tips

Bad credit affects every financial transaction you make. You have doubtless experienced thedownside of a low credit score. Current economic conditions are affecting a lot of people's credit.There are, however, ways to better it, so be sure to read these tips to repair it.

Financing a new home can be a challenge, especially if you have a history of bad credit. If yourincome is a factor you may qualify for a FHA loan, which has lower standards and makes the federalgovernment your lender in a sense. FHA loans offer lower down payments and help with closingcosts.

If you need a credit card to aid in fixing your credit but you cannot obtain one due to the state ofyour credit, applying for a secured credit card is an option. These types of credit cards often requirea good faith deposit to open a new account. By using a new card responsibly, your credit rating willstart to increase.

Pay down the balance on any credit card that is 50% or more of the credit limit. If you let yourbalances get too high, your credit rating will drop significantly. You can either spread your debt outby transferring some of the balance to low interest cards, or better yet, pay off as much as you can.

A great credit score should allow you to get a mortgage on the house of your dreams. One way tohelp improve your credit is to pay your monthly mortgage payments on time. The more equity youhave in your home, the more stability the banks see in you. This will be beneficial when you apply forloans.

Credit restoration requires that you begin paying your bills. You need to pay your bills off on time;this is very important. Your credit score starts to improve immediately upon paying off some of yourpast due bills.

If you are trying to repair your credit, check all of your negative reports very carefully. The item maybe essentially correct, but there may be an error someplace. If the date or amount, or some otherthing is incorrect it may be possible to get the entire item removed.

Page 2: You Can Repair Your Own Credit With These Tips

If you find a mistake on your creditreport, be sure to dispute it! Report anyerrors to the three credit reportingagencies. Be sure to include anydocuments to support your case. Sendyour dispute package with a returnreceipt request so that you have proofthat it was received by the agency.

Do not use credit cards to pay for thingsthat you simply cannot afford. You youneed to rewire your thought process.Getting credit has never been easier,making it just as easy for people to buyitems they simply can't afford. This,though, comes with a hefty interest

price tag. Be honest with yourself about what you can truly afford.

If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. This willprovide proof of your agreement in case any problems ever arise. When the debt is eventually paidor settled in full, you should request documentation of this and forward copies to the primary creditreporting companies.

Begin the process of credit score repair by trying to pay down your credit card balances as fast asyou can. Pay off accounts with the highest interest rates first. This will show creditors that you areresponsible with the cards.

Make sure that you always read your credit cardstatement entirely. You will need to read over everycharge on your account to check that it is accurate. Donot trust the credit card companies to have your back,guarantee you do not pay debt that is not yours yourself.

Avoid frustration about a low credit score. These tips willhelp your score stop failing and start improving.