Having poor credit can be a devastating occurrence in life. A bad credit report closes doors to financial options and opportunities. Follow these tips to start repairing your credit.
If you are buying a home it will not always be easy, and even more difficult if your credit is bad. FHA loans are good options in these circumstances, because the federal government guarantees them. If you do not have a down payment or money for closing, consider a FHA loan
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%. You should keep your balances under fifty percent; anything over this and you can lower your credit rating, so spread out the money you own and pay down your credit cards.
If you make a decent income, consider an installment account when you want to give your credit score a boost. It is necessary to at least pay the minimum, so insure the account is something that you can pay. By successfully handling the installment account, you will help to improve your credit rating.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. Creditors are skirting a fine line of law when they try to charge you exorbitant interest rates. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.
Any person who needs a loan or line of credit to make home repairs, start a business or send their kids to college will need to have a good credit score. Your low credit score can be rectified with the use of the simple tips described in this article.