Jennifer Smith Posted on 4:41 pm

All Your Credit Score Repair Questions Answered Here

Poor credit is a terrible thing for you to deal with as you journey through life. Instead of getting that house or that job, you are left sitting with a refusal and a copy of your credit report. That said, it is possible to restore your credit to its former glory and prevent it from being wrecked again.

Getting home finance can be quite tough when your credit rating is not good. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.

The first step to repairing your ailing credit is to create a manageable, feasible financial plan. You need to change your past habits and build new, better approaches to credit. Stick to the essentials, and avoid frivolous purchases at all costs. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf.

When your credit is so bad that you can’t get a ‘regular’ credit card, a secured one will help you to repair your credit. Anyone can get one, but you must load money onto the card as a type of “collateral”. If you get a new card and use it responsibly, it will help to improve your credit score.

Credit Score

If your credit is good, it’s easy to get a mortgage on a new home. Keeping up with all of your mortgage payments will help pull your credit score even higher. Home ownership demonstrates that you have financial stability because they are secured by a valuable asset, and this results in a raised credit score. This will be useful in case you need to borrow money.

Opening an installment account can give quite a boost to your credit score. There is a minimum amount each month that you will have to pay, so be sure not to get in over your head. If you can manage one of these accounts, your credit score should improve quickly.

When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Unfortunately, this negative information stays on your credit record for at least seven years. It is possible, however, to remove errant information.

To start fixing your credit, you will have to pay your bills. Your bills must be paid completely and on time. This will improve your credit score. The score rises as soon as you start making some headway on your overdue bills.

When trying to rehabilitate your credit, it is important to work with each credit card company you are indebted to. If you do this you’ll find that your debt doesn’t increase and your credit is improved. Politely ask if it is possible to have your minimum monthly payment adjusted or due date changed.

Contact your creditors to request a reduction in your credit line. This will stop you from racking up giant credit card bills, and show lenders you are responsible.

Having read these simple tips, the only thing left now is to apply them. Educating yourself about credit and how it works is an important investment that will pay off in the future.