Always examine your monthly credit card bill to make sure everything is accurate. You don’t want them reporting these to the credit reporting companies, so you’ll need to contact them immediately if there are. Call your credit card companies and request that they lower your limit on your cards. This will stop you from racking up giant credit card bills, and show lenders you are responsible. Keep track of your battle with credit bureaus to have incorrect information removed from your credit report. Keep track of the interactions you have with everyone, including emails, letters or phone calls. If you are going to use a dispute letter, make sure you get it certified so that you can prove it was received by the company.
Look at your credit report and see if there are any missed payments or outstanding debts recorded. Give it a once over and check for errors, then start the hard work of fixing the problems you created. Debt with high interest needs to be paid off first while paying the minimum for all of the other accounts.
Before you choose a credit counseling agency, find out more about them. Although some can be quite legitimate, others have motives that are less than kind. Some are just people trying to scam you. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information. Debt consolidation programs can really help you rebuild your bad credit. If you consolidate your debts into one payment, it makes it much simpler to budget and track your expenses. This is a great step to take towards credit repair.
A great credit score should allow you to get a mortgage on the house of your dreams. By paying off your mortgage on time, you will even improve your credit score further. As a homeowner, you will have a major asset that can have positive effects on your credit profile. Financial stability is important should you need a loan. Financing homes can be made more difficult when your credit score is low. An FHA loan can be helpful in such a case since the federal government backs these loans. FHA loans are a good option regardless of your down payment amount or funds available for closing costs. Dispute any errors that are on your credit report so they are removed. Draft a dispute letter that will go to each credit rating agency that shows an error, and prepare any supporting documents. Sending your letter by certified mail provides you with proof that the letter was received. We hope that this information has proven to be useful to you. Use these tips so that once again, you can experience what it is like to take advantage of good credit. Remember that it takes time to undo this kind of damage. If you can manage to hold on and diligently work towards that goal, you will see that it was all worth while.