Are you struggling because you have bad credit? In this economy, many people find their credit score plummeting. Luckily, there are things you can do to improve your score. You can start today after reading these tips for credit repair.
Financing homes can be made more difficult when your credit score is low. In this situation, it is a good idea to try to obtain an FHA loan, because these loans are guaranteed by the federal government. FHA loans are also great when a borrower doesn’t have the money to make a down payment or pay closing costs.
Pay down any credit cards with a balance in excess of 50%, preferably getting them down to 30%. 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.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. You can improve your credit rating quicker using this type of account.
When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. Unfortunately, this negative information stays on your credit record for at least seven years. Stay mindful, however, of the fact that false information can be stricken.
Before agreeing on settling a debt, find out how if the process will raise or lower your credit score. Some methods are less damaging than others; research them all before making an agreement with your creditor. Some debt settlement companies are only after profits and do not communicate the likely consequences of their methods.
If you have been frustrated and felt discouraged about your bad credit score, take these tips and use them to change that. Stop the damage and start repairing your credit score today.
