Saturday, December 21, 2013

Credit Problems? Improve Your Situation With These Tips

By Dan Annweiler


Bad credit can add salt to an economic wound. It could have been created by honest errors or life experiences out of your control, but bad credit can really stifle your lifestyle and act as a constant reminder of times you'd like to forget. Fortunately, there are things that you can do to repair your credit and the information below may be able to help you do just that.

For some it may hard to finance their home due to having less than ideal 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.

Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Any balances that are over half your limit drag your credit rating down. So be sure to pay your credit card down or, if you can not, try to use another credit card.

If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Once your balance reaches 50%, your rating starts to really dip. At that point, it is ideal to pay off your cards altogether, but if not, try to spread out the debt.

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.

One of the first steps of improving your credit score is ensuring that your bills are always paid. Your bills must be paid completely and on time. As soon as you have cleared those old debts, you will see an immediate improvement in your credit score.

Stay cautious and aware of scams online that can lead you to even bigger problems. Scams abound on the internet that show you how to change your credit file. Do things like this can get you into big trouble with the law. In addition to the possibility of facing jail time, you could be fined, your attorney bills may be substantial, and your reputation could be ruined.

Legitimate negative credit problems can not be easily wiped away from your credit rating, so be wary of companies that promise they can do so. Regardless of their claims, these debts will stay on your report for seven years at a minimum. However, if there is incorrect information, you can have it cleared up easily by yourself.

Prior to agreeing to a debt settlement agreement, find out how that process is going to impact your credit score. Some methods are less damaging than others; research them all before making an agreement with your creditor. The creditor does not care what happens to your credit score, as long as they get their money.

Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. Gather your support documents, make a list of the errors, and compose a letter to pertinent agencies. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.

So, by now it is clear that if you want to raise your credit score, there are a multitude of ways of going about it. Use the helpful tips in this article to help you raise your credit score. A better credit score is within your reach.




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