Friday, June 22, 2012
If you just had some knowledge about the amount of money you owed and who you owed it to, you could have prevented this debt crisis. At this point, you need to practice some crisis prevention and start fixing your score. The following advice is easy to put into practice, so read it and then put it to use.
The fastest way to start repairing credit is by paying off debts that are already outstanding. If you are not paying off your debt, your credit will take a hit.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.
Joining a credit union may be helpful if you want to work on improving your credit score and are finding it difficult to access new credit. Credit unions sometimes have better rates and more options for your credit rather than a large bank. You can base this on how well the economy is in your area instead of the national situation.
Opening too many lines of credit negatively affects your credit score. As tempting as it can be, do not a new credit card. Once you open a new credit card, your credit score will become lower.
When you get your monthly credit card bill, check it over to see if there are any mistakes. Immediately report any errors to your credit card company to prevent a bad mark on your credit report.
A first step in fixing your credit is to close all credit card accounts that are unnecessary. Aim to only have one account. You should plan on how you will pay the remaining open balances, or how to consolidate them into one account. Paying off one main credit card will be easier than paying off several cheaper ones.
Check your credit report to see if there are any missed payments or outstanding debts you didn't remember. Ensure that all information is accurate, then begin to address discrepancies and problematic accounts. Debt with high interest needs to be paid off first while paying the minimum for all of the other accounts.
If you are trying to repair your credit score, open a new credit account, charge something to it, and then pay it off immediately. It will shows people that you are responsible and get you back into a positive standing.
Carefully read the small print on your statements. It's up to you to ensure that the charges on your bill are correct and that you haven't been double charged, overcharged or charged for something you didn't buy. It is solely your responsibility to be sure that everything is correct.
You probably noticed that in order to repair your credit score, you really need to use common sense. By following the information here, you will be able to finally get your credit repaired.