In today’s day and age, it is not uncommon to hit “rock bottom” and be in need of credit repair advice. Reaching this point can make you feel like there is no where to turn, and no way to get back on track again. That’s really not the case, and following a few simple steps can help you along the way.
If you have a credit rating that is less than 640 than it may be best for you to rent a home instead of trying to buy one. This is because any lender that will give you a loan with a credit rating like that will most likely charge you a large amount of fees and interest.
If you have been repairing your credit for a while and have been paying responsibly, ask your credit card company to raise your credit limit. Debt utilization, the ratio of your debt to your credit limit, is one factor that determines your credit score. If you get a limit increase, then that ratio will be lower, making you appear to be a lower credit risk.
Try credit counseling instead of bankruptcy. Sometimes it is unavoidable, but in many instances, having someone to help you sort out your debt and make a viable plan for repayment can make all the difference you need. They can help you to avoid something as serious as a foreclosure or a bankruptcy.
An important tip to consider when working to repair your credit is that you should always check for deals and offers with credit monitoring offers. While these programs are usually affordable on their own, it is important to save as much money as you can when trying to repair your credit.
More income is the obvious choice when one is working to repair their credit. Therefore, it is important to consider getting a second job. This is important because it is very likely that you actually do have extra time that you could allocate toward earning income. It is equally important to overcome pride, and realize that your current job may just not be enough for you to dig yourself out of a hole.
If you are in serious credit card debt and are trying to improve your credit score, get rid of all of your credit cards except one. This allows you to streamline the process of paying your monthly bill and prevents you from charging more onto cards that already have high balances.
When working to repair your credit, it’s important to consider the different ranges that different reporting agencies use. This is important to know, so that you know the meaning of your own score. The main scores used are FICO: 300 – 850, Experian: 330 – 830, Equifax: 300 – 850, and TransUnion: 300 – 850.
An important tip to consider when working to repair your credit is to try to sign up for automatic bill pay. This is important to consider because the money will automatically be taken out of your account and you will never be late, as long as the money is in there. Many times, it is simply forgetfulness that causes accounts to be paid late states the pros from Credit Restoration Mcallen.
Bringing the balance on your credit cards below 50 percent of your limit will help improve your credit. Lenders often look to see how much credit you use compared to what the limit is on your card. Ideally, it should be between 30 and 50 percent. Remember, lowering the amount of interest you pay is not the overall goal; you want to improve your credit rating.
If you are trying to repair your credit, don’t allow a disputed bill to go to collections. Just because something shouldn’t have been charged to you doesn’t mean it can’t go to collections and harm your credit score. Instead of refusing to pay the bill, pay it but include a notice that you are paying under protest and intend to take the matter to the small claims court.
Hitting “rock bottom” does not have to mean the end of your financial future. By using some common sense, and following the simple steps outlined in this article, you can greatly improve your financial forecast. The road might not be a short one, but the end result will most certainly be worth the effort.