Your dreams of home ownership, a nice car and a great job can all be tied to your credit. Having a bad credit score is not only detrimental to being able to afford loans on the things you want to buy, but also can affect the job that you are able to get. Read the tips below for ways that you can repair your credit if necessary and keep it good if it already is.
Getting a traditional home loan can be difficult, if not impossible, with imperfect credit. 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 are a good option regardless of your down payment amount or funds available for closing costs.
If you have challenged or denied negative items on your credit report and some still remain, you may be able to reduce that number even further by contacting the collection agency or creditor. By law, these companies need to provide written proof that the account is yours. This means a hard copy of a signed contract or other legally binding document, not just a printout of the information they have in their computer system. Many of these companies do not hold onto these documents. If they can’t come up with acceptable proof, they are required to remove the account from your credit report and stop all collection attempts.
To build your credit score, apply for secure credit cards. You decide in advance how much these cards will cover, so that you do not spend more than you can afford to pay back. This should help you manage your finances efficiently and build your credit at the same time.
To improve your credit history, ask someone you know well to make you an authorized user on their best credit card. You do not need to actually use the card, but their payment history will appear on yours and improve significantly your credit score. Make sure to return the favor later.
When using a credit repair service, be sure not to pay any money upfront for these services. It is unlawful for a company to ask you for any money until they have proven that they have given you the results they promised when you signed your contract. The results can be seen in your credit report issued by the credit bureau, and this could take six months or more once the corrections were made.
If you want to invest to improve your personal finance, then make sure that you are investing for the long term. The stock market can be a very volatile place. If you wish to make short-term gains, it can be like flipping a coin. The best way to earn with stocks is by going for long term investments.
Not having a good credit score, or not having any credit at all can seriously impact the life that you live. So much of what we do relies on credit. We need it to buy a car, a house or even have a credit card. This article has shown you how to manage your credit in a way that you will be able to enjoy all of these things.