Having bad credit is an extremely annoying issue to deal with. Instead of getting that house or that job, you are left sitting with a refusal and a copy of your credit report. However, it is possible to fix your current credit problems and take steps to protect your future credit rating.
Getting money for a home loan can be difficult, particularly when your credit is less than perfect. See about getting an FHA loan, which are loans that the federal government guarantees. FHA loans can even work when someone lacks the funds for down payment or closing costs.
If you have credit cards with a balance that exceeds 50% of your credit limit, you must continue to pay on them until the balance is lower than 50% of the credit limit. If any of your balances climb past half of your available credit limit, pay them down or spread the debt around other accounts, otherwise, your credit rating gets tarnished.
If you can afford to pay another monthly bill, an installment account paid on time will increase your credit rating. With this sort of an account, you need to keep a minimum. Keeping an installment account will help your credit score.
You can get a house mortgaged at the snap of a finger if you have a high credit score. Making your mortgage payment on time each month will also boost your credit score. When you own your own home it shows that you have assets and financial stability. If you have to borrow some money, you will need this.
Do not fall for the false claims many have about their ability to fix your credit. The claim that they can remove accurate debts from your credit report is false. These things are, generally, on your record for seven years. It is possible, however, to remove errant information.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. This will prevent you from spending too much that you do not have. It will also show the credit companies how responsible you are, and if you do need to get more credit in the future, you will have a much easier time.
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 not attempt this because it's illegal; you will not be able to avoid getting caught. You may end up in jail if you are not careful.
Anything on your credit report that you feel is inaccurate should be disputed. Gather all supporting documents and any errors you find, and send them with a letter to the credit reporting agencies. Mail your dispute documents to the agency using certified mail and a return receipt so that you can prove the agency received them.
If you are able to successfully negotiate a payment schedule for a debt, it is important to request a copy of the agreement in writing. This is for your protection. It allows you to have valid documentation of the terms in the event that a creditor reneges on its offer or changes owners. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
Having a poor credit score can make you have negative feelings about your finances. Using these credit tips can help you change your thinking and start improving your credit.