Having bad credit can sometimes cause you to feel like you are a victim of circumstances. Your bad credit might remind you of your past, and the poor decisions or circumstances that led you to where you are today. However, your luck can change when you realize that there are simple things that you can do immediately to raise your credit.
If you don’t have very good credit, financing your home may not be easy. If your income is a factor you may qualify for a FHA loan, which has lower standards and makes the federal government your lender in a sense. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.
Planning is the first step to repairing your credit. Be totally committed to changing your spending habits. Avoid buying what you don’t need. See if each purchase is necessary and affordable and only purchase something if the answers are “yes”.
If you have credit cards with balances that are greater than fifty percent of the maximum, you should pay those down as quickly as possible. It’s best to keep all of your credit cards below the fifty percent mark! Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
A great credit score should allow you to get a mortgage on the house of your dreams. Making mortgage payments in a timely manner helps raise your credit score even more. Owning a home shows financial stability, which is great for your credit. This is helpful in case you want to borrow money.
Getting a reduced interest rate is the easiest way to reduce your overall debt. Creditors trying to charge more from you than what they originally loaned you plus a reasonable amount of interest are usually willing to negotiate. Although, in reality, you did agree in advance to pay any interest charges incurred. You can consider suing your creditors if the interest rates are outrageously high.
When trying to improve bad credit, beware of companies who promise that they can erase any negative, but correct items, on your credit report. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. Incorrect information may be erased though.
Having bad credit can lead to feelings of hopelessness, and these negative sentiments can pervade your thoughts. Following these tips to improve your credit score will help you take charge and have a more positive attitude.
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