What You Don’t Know About Repairing Bad Credit Can Hurt You
Do you constantly worry about your credit report? The tips provided here in this article are going to help straighten out your credit and get you into a better financial situation.
Having poor credit makes financing a home a nightmare. If this is the case, you can apply for a loan through the Federal Housing Administration (FHA). The credit requirements for these loans are more lenient than those of conventional lenders, and the federal government also guarantees the loans. FHA loans can even work when someone lacks the funds for down payment or closing costs.
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. If you let your balances get too high, your credit rating will drop significantly. You can either spread your debt out by transferring some of the balance to low interest cards, or better yet, pay off as much as you can.
A good credit report means you are more likely to get financing for a home. Paying mortgage notes on time will keep your credit scores high. 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.
Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. However, you agreed to pay the interests off when you signed the contract. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
Before using a credit counselor, it’s important to research them completely. Some credit counselors offer real help while others have more dubious things in mind. Also be aware that there are other credit counseling services run by dishonest people. These services are scams and should be avoided at any cost. Be a wise consumer by checking whether or not the credit counselor you are going to deal with is legitimate.
Hopefully you have found this information to be informative. Credit repair can feel like a battle that is all but lost, but if you take the right steps the battle can be won. Just keep moving forward and be patient. Have faith that your persistent efforts will pay off and that you can be debt-free.