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Fast Ways On How You Could Fix Your Credit

July 8, 2013
Bad credit can hurt your life in many ways. Bad credit makes it harder to get any type of loan including for a car or house. If you don't pay your bills on time, your credit score will suffer. If you have a credit score below 650, you need to read this article right away.

If you have a poor credit rating, it can be extremely difficult to obtain a mortgage loan for a home. If possible, apply for an FHA loan; these loans are backed by the United States government. It might be possible to get an FHA loan even if you don't have the money for a down payment or the closing costs involved.

If you are unable to get an unsecured credit card due to your low credit rating, consider a secured card to help reestablish your rating. In order to get the card, you will have to fund the account as sort of an insurance that shows the bank your debts are going to be paid. If you show a good history of payments with this card, it will help improve your credit standing.

Your interest rate will be lower if you have a good credit score. By doing this your monthly payments will be easier to afford and your bill will be paid off faster. Obtaining the best possible interest rate saves you money, and helps you maintain your credit score.

You will be able to buy a house and finance it if you maintain a good credit rating. You will get a better credit score by paying your mortgage payment on time. Owning your own home also improves your credit score in the form of having large assets to borrow against. If the need arrives to obtain a loan for any reason, this will be a valuable asset for you.

Try opening an installment account. An installment account requires that you make a minimum payment each month. It is imperative that you only take an installment account that is affordable. Keeping an installment account will help your credit score.

Many credit card companies are willing to help customers by eliminated late fees or lowering monthly payment amounts. Avoid collection to improve your credit score. Talk to the company and see if you can change your due date or monthly fees.

Avoid bankruptcy at all costs. It can adversely affect your credit for up to 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. Bankruptcy destroys your ability to get any sort of loan for at least a few years, so don't file unless you have to.

How You Can Fix Your Credit It is important to carefully review your monthly credit card statement. If there are, you will need to contact the company immediately to avoid them reporting this to a credit reporting agency,

When you are involved in a credit crunch, you have many debts but not enough money to pay them. Try to make sure that you find a little bit of money in your budget for all the creditors you owe payments to. Paying each creditor something, even less than the minimum payment due, can usually appease your creditors enough that they will not turn your accounts over to collection agencies.

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