Thursday, October 10, 2013

Jumpstart Your Credit With These Great Credit Repair Tips!

By Aaron Hart


Bad credit can make you feel like a victim. You might have had a bad time or made some mistakes but you can move forward. Don't despair, there are ways you can repair your credit.

Getting home financing is no small feat, especially if your credit score is less than perfect. If this is the case, try to get an FHA loan, which are loans backed by federal government. FHA loans are great for the individuals that do not have the financial capability to make down payments.

Any of your credit cards with balances that are above 50% of your overall limit need to be paid off as soon as possible, until the balance is less than 50%. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month.

You can receive a better interest rate if you have excellent credit. This allows you to eliminate debt by making monthly payments more manageable. Obtaining lower interest rates and recording it in a book keeping software will make it easier for you to manage your credit, which in turn will improve your credit rating.

You should consider talking to directly with your creditors when you are trying to improve your credit. If you do this you'll find that your debt doesn't increase and your credit is improved. Do not be afraid to call your credit card company and ask if you can make changes to your due date or your minimum payment amounts.

To earn a sufficient wage and boost your credit, try opening an installment account. Make sure you can afford to make the payments and try to maintain a minimum monthly balance. Handling an installment account correctly will help you improve your credit score in a short period of time.

Make sure you do your research before deciding to go with a particular credit counselor. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Others are just plain fraudulent. It is wise for consumers to not give out personal information unless they are absolutely sure that the company is legit.

Joining a credit union can give you opportunities to increase your credit score. Credit unions often offer better interest and more options than chain banks do.

If you find any errors on your credit report, you should dispute them. Send a letter to all agencies involved. Include the errors you noted along with supporting documents that prove that the information on file is erroneous. Sending your letter by certified mail provides you with proof that the letter was received.

Having read these simple tips, the only thing left now is to apply them. Credit rating affects your life in many ways, so make sure to learn all you can about it.




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