Jennifer Smith Posted on 11:06 pm

Ways You Can Control Your Credit Report

Are you struggling because you have bad credit? There are millions of people who have seen their credit score go down in today’s rough economic climate. However, there is hope! Read on for some tips on improving your credit score.

For those with imperfect credit, it can be hard to secure financing for a home. If possible, apply for an FHA loan; these loans are backed by the United States government. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.

Start by paying off credit cards with accounts 50% over your limit. You can concentrate on another card once these accounts are lowered to under half of your limit. Creditors like to see you using your accounts, but still keeping your balances under 50% of your allotted credit.

With a good credit score, you can easily buy a house and mortgage it. One way to help improve your credit is to pay your monthly mortgage payments on time. Owning a home gives you secure financial assets. This will be beneficial when you apply for loans.

Try to negotiate with your creditors about the amount of interest you’ll pay on an old debt. In many situations, exorbitant fees and penalties can be challenged. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. You need to be able to prove the interest rates are too high if you want to sue your lenders.

As you work toward repairing your credit score, you should be willing to cooperate and work with your creditors. Maintaining contact shows your good faith and can help you minimize further debt. Credit card agents may have the authority to eliminate monthly charges, extend your due date or change your billing cycle.

Credit Counselors

When trying to repair your credit, research any credit counselors you consider using very thoroughly. Although some can be quite legitimate, others have motives that are less than kind. Some will try to cheat you. Wise consumers always verify that credit counselors are legitimate before dealing with them.

If an action can result in imprisonment, draw the line. There are many different places that claim they can help you get a new credit profile. You will be prosecuted, it is against the law. Think of the legal costs and the possibility of doing hard time.

Before you agree on an agreement for settling your debt settlement, you should determine what affect this will have on your credit score. Research all of your options, make an informed decision about the method you chose, and only then should you agree to the settlement. The credit companies are looking at their own bottom line and are not concerned with your credit score.

When looking over your credit report, look closely at the negative report that are listed. If you notice a mistake on your report, you could get some items crossed off. Even if the item itself is right, an error in the date or amount gives you the right to contest it.

If bad credit is causing your to worry, then these tips are your passport to a better life. This information can assist you in stopping the downward direction of your FICO credit score, and making it head back up.