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1 year ago

If Your Credit History Is Bad Then Follow This Advice

Does your credit rating give you nightmares? The sound advice above will help you repair your credit and be proud that you are financially responsible again.

If you don't have very good credit, financing your home may not be easy. If this is the case, try to get an FHA loan, which are loans backed by federal government. Some FHA loans even cover a down payment or your closing costs.

When your credit is so bad that you can't get a 'regular' credit card, a secured one will help you to repair your credit. When you open a secured credit card account, you place money on deposit to cover any charges you may make. This ensures in advance that you will have enough money to pay for your debt. If you use a credit card well, your credit rating will begin rising.

If your creditors try to jack up your interest rates, do not pay them. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Keep in mind that you did sign a contract agreeing that interest rates were acceptable. If you decide to sue your creditors, you should be able to have the interest rates recognized as too high.

You can dispute inflated interest rates if you are being charged more than you should be. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Remember that you agreed to pay that interest when you signed the contract. If you plan on suing your creditors, you may be capable of having the interest rates viewed as being too high.

Officially dispute any errors you find on your credit reports. Write a dispute letter to any agencies with recorded errors, and include supporting documents. Make sure that you ask for a return receipt so that you know your letter makes it to its intended destination.

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. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.

When you want to rebuild your credit, take a close look at any negative reports that are harming your credit. There may very likely be errors or mistakes that can be removed.

Before agreeing on settling a debt, find out how if the process will raise or lower your credit score. You should know all about the methods you can use if you are going to enter into an agreement with someone. Debt settlers are more interested in their money than your credit rating.

Try to pay down all of your debts until you're only carrying a balance on one. Transfer credit card balances to one card for loan consolidation. This way you can work on paying one credit card balance off, instead of a bunch of smaller ones.

Repairing your credit rating and cutting down your debt involves a lot more common sense than anything else. By following the information here, you will be able to finally get your credit repaired.


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