Step By Step Guide For Repairing Credit

Oct 3rd, 2013 | By | Category: Info

lineofcreditDebts that you may have forgotten about or been unaware of can seriously hurt your credit. Stop the bad habits and get a hold of your finances, repair your credit and find good cash management.

Getting home finances can be quite tough when your credit rating is not good. Try to secure an FHA loan; these are federal government guaranteed. FHA loans can even work when someone lacks the funds for down payment or closing costs.

Higher Balances

If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Credit card balances are among the factors taken into account when determining your credit score. Maintaining balances over 50% will lower your rating. You can attain lower your balances by using balance transfers to move debt from accounts with higher balances to those with lower balances, or by simply paying off some of your higher balances.

No credit repair company can remove factual information, no matter how damaging, from your credit report. Negative info stays on your history for seven years! Incorrect information may be erased though.

A good tip is to work with the credit card company when you are in the process of repairing your credit. When you work with the company you are not working against anyone and you do not need to hide any information from anyone.  This will help prevent furthering yourself into debt. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.

You could consider asking your credit card provider to reduce the amount of credit extended to you, this is a little unsettling but definitely an option. This will prevent overextending yourself and lets the company know about your responsible borrowing habits. You could get credit easier in the future.

Credit Score

Before you sign any debt settlement, research what effects it will have on your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. There are some creditors who have no concern over how your credit score can be affected.  They just want your money!

If you are doing hardcore credit score improvement, you must to scrutinize your report for negative entries. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.

If you find inaccuracies on your credit report, make sure to dispute them. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.

Stop spending more money than you have available. This is nothing short of a lifestyle overhaul. If you’re buying flashy items to boost your reputation, consider that a smart person who isn’t being chased by collectors will have an even better reputation! Take a hard look at your financial situation to come up with a realistic spending plan.

As you are now aware from this article, common sense is the prevailing wind that will sail you to better credit scores.

Tags: , , , ,

Comments are closed.