With this downward economy, it is no surprise that millions have poor credit scores. Follow these tips if you need a better credit score.
If you don’t have very good credit, financing your home may not be easy. In this situation, it is a good idea to try to obtain an FHA loan, because these loans are guaranteed by the federal government. FHA loans even apply for someone who doesn’t have closing costs or the funds that are needed for down payment.
If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. Your credit score can be negatively impacted if you are carrying a large balance compared to the available credit you have. While you are paying off these cards, reduce the balance to a small percentage of your available limit.
If you have credit that is not high enough for you to obtain a new credit line, sign up for a secured card. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. If you use it correctly, a new card can help you fix your credit.
Think about getting an installment account to save money and improve your credit score. All installment accounts must stay above the set monthly minimum, so only open one if you can afford it. If you can manage one of these accounts, your credit score should improve quickly.
If you see errors on your credit reports, dispute them with the credit agency. Create a dispute letter for agencies that have the error, and submit additional supporting documents along with it. Make sure when you send the dispute package that you request proof by signature that it was received.
As you can see, common sense is the essence of rebuilding your credit and beating your debt. Using this easily-understood information can help you reach your goal.