Whether you fell prey to the guys handing out credit cards like candy on campus, got carried away on one too many shopping sprees or got hit hard by the recent economic downturn, you probably did some damage to your credit. The following tips will help you take steps to begin to repair your credit.
Getting home finance can be quite tough when your credit rating is not good. In this situation, it is a good idea to try to obtain an FHA loan, because these loans are guaranteed by the federal government. It might be possible to get an FHA loan even if you don’t have the money for a down payment or the closing costs involved.
If you have a poor credit history and can’t qualify for a credit card, get a secured card. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. A new credit card, used responsibly, will help repair your credit rating.
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%. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
To earn a sufficient wage and boost your credit, try opening an installment account. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. Your FICO score will rise over time, if you responsibly manage this type of account.
Repairing your credit is actually pretty simple. The first step is to focus on paying your late bills. Paying your bills on time and for the full amount is important. You will notice an improvement in your credit score pretty quickly after paying off some past debts.
You need to work with the companies from whom you have credit cards. This will help you stabilize your situation and start working towards a better financial situation. This can be accomplished by negotiating with them for a change in due date or monthly charges.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
Addressing a bad credit report might seem daunting at first, but if you learn the tricks and stick to the process, you can improve your credit dramatically. With the advice you were given in the above article, you can get to work on improving your credit score today.