Jennifer Smith Posted on 3:23 pm

Great Credit Improvement Tips For Struggling Debtors

You may feel like you have been wronged. It can be hard to move on with life when a negative credit score is always following you throughout your endeavors. There are some excellent ways to repair your credit, a few of which are shared here.

Getting home finance can be quite tough when your credit rating is not good. If you are in this situation you should look into FHA loans before speaking with a bank. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.

Try to get a secured credit card if you are not eligible for an unsecured card. This will help you fix your credit. These accounts are much easier to get as you will have to fund the new account ahead of time with a deposit to cover any purchases. If you get a new card and use it responsibly, it will help to improve your credit score.

Interest Rates

Getting a reduced interest rate is the easiest way to reduce your overall debt. It is bordering on illegal for credit card companies to charge you skyrocketed interest rates. Your initial agreement likely included a commitment to pay interest. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.

Negative-but-correct information cannot be removed from your credit report, so be wary of promises from unscrupulous companies who promise to remove it from the credit reporting agencies. This information can stay on your record for about seven years. You can, however, succeed at having incorrect information erased from your credit reports.

Be very wary of programs that do not sound legal; chances are they aren’t. The Internet is rife with many scams that will go into detail about creating yourself a brand new credit file and making the old one magically disappear. This is illegal and you’ll get caught. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.

Though it is an unsettling prospect, consider asking your credit card provider to reduce the amount of credit extended to you. It will pay off in lowering the risk of excessive borrowing and reflecting good financial decision making on your behalf.

Before you get into an agreement about settling a debt, make sure you understand how it’s going to affect your overall credit. Certain methods of settling your debts have less detrimental effects on your credit history. Creditors just want their money and really aren’t interested on how it will affect your score.

Credit Unions

Credit unions are an option for those who have run out of options. With help from a credit union you might get better rates than at another bank, since credit unions better understand the current area compared to the national situation.

It is easy to get down on yourself when your credit score is low. Using these credit tips can help you change your thinking and start improving your credit.