Debts that you may have forgotten about or been unaware of can seriously hurt your credit. It’s now time to buckle down and fix your credit. Follow this easy advice to get your credit back on track.
For some it may hard to finance their home due to having less than ideal credit. If this is the case, try to get an FHA loan, which are loans backed by federal government. Even if the applicant does not have money for closing costs or a down payment, an FHA loan is workable.
Pay down the balance on any credit card that is 50% or more of the credit limit. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.
Try to keep a balance of less than 50% of your available credit on all of your cards. 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.
Give your credit card company a call and ask them to lower the limit on your credit card. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.
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. Include a request for a return receipt with the dispute package so that you can prove it was received by the appropriate agency.
Using the tips from this article will make a dramatic improvement towards your credit score. Be consistent and be aware of your obligations. Stop worrying and start repairing your credit score now!