If you had kept a record of who you owed money to then perhaps your debt could have been avoided. It’s now time to buckle down and fix your credit. The following advice is easy to follow and can help you repair your credit score.
If your credit does not allow you to obtain new credit, getting a secured one is much easier and will help fix your credit. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. If you open a credit card account, keep charges fairly low, and pay it on time, this will go towards improving your credit score.
Look at the credit card accounts you have with a balance over 50% of the credit limit. Pay those off until they fall under this number. Your credit score can diminish with balances over 50%, so spread out the debt or pay off the credit cards.
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. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. This will be very helpful if the time comes where you need to take out a loan.
Installment Account
Getting an installment account can help you earn money and provide a boost to your credit. With an installment account there is a monthly minimum you need to keep, so only open an affordable account. You might see a big improvement in your credit score, if you can handle an installment account responsibly.
Good credit isn’t worth much if you are in lockup. Creating a new credit score or using a different identity seem like easy solutions but bad credit is not worth taking this kind of risks. It’s illegal to do this and you can get caught easily. The end result of getting caught during the crime could be expensive legal fees and a possibility of time behind bars.
Call and request lower limits on your cards from the credit card companies. This will keep you living within your budget, and will show the credit companies that you repay debts. This will allow you to get credit easier in the future.
Before you agree to any sort of repayment plan to settle your debts, consider how this will affect your credit score. Some settlement agreements can actually be bad for your credit score, so be wary and do your homework. The credit companies are looking at their own bottom line and are not concerned with your credit score.
Make sure to check all three of your credit reports, and pay extra attention to the negative reports when you are working on repairing bad credit. Even if the negative credit item itself is not erroneous, if any of the data pertaining to it is, then you may be possible to have it removed from your credit report.
Credit Union
Consider joining a credit union. They offer a lot of benefits to their members and it can be easier to obtain a line of credit from them. 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.
Fixing a bad financial situation requires common sense rather than monetary skills. If you follow some sound advice and use common sense, you can be on your way back to good credit.