Ways to Improve Credit Rating
June 10, 2008
Keys to Improving Your Credit Rating
Buying a house can be a complicated thing to do, but it is near impossible if you have bad credit. For a while, there were lenders that would lend to just about anyone, but since the housing market is in trouble due to a large number of home foreclosures, this is something of the past. If you want a home, it is advised that you work on improving your credit rating to get the best chance of getting a home loan at the best interest rate.
People who have a history of bad credit can go about many ways of improving credit rating, and the number one way is to get out of debt. I call it the debt snowball. You can start with the small ones, and then work out something with the larger debts. Like a snowball going downhill. Ask for payments each month. They may want the whole amount, but you can tell them the best you can do.
Personal Note: The best money I ever paid in credit cleanup was to www.ApexCredit.com to help me clear some of the bad marks on my credit report I could not shake. A man by the name of Seena Farhang, there also negotiated a hospital debt from $10k to $3K for me. It was tough to pay but I did it. They were excellent, I am not kidding. This is not a sales pitch but the truth. I make no money from this endorsement. A company I work with a lot on business financing, www.WallStreetCapitalFinancing.com referred me. I was glad they did because I was able to dig my way out of a hole and make a better financial future for myself.
While paying debt off while all the while improving credit rating on your FICO score, remember to watch your credit score to be sure these debts showing up as paid in full on your records. This might take a bit, so don’t get upset if they aren’t marked as such right away. If something is paid and a few months go by with no update, then you should take action to be sure the reports are updated and correct. Also remember that something marked as paid will look better than something that was settle for a lesser amount. It is not recommended that you settle because this can come back to bite you in the future due to the impact on your credit.
If you want to improve your bad credit report, the absolute worse thing you can do is get a credit card to pay off old debt. You are digging a financial grave. Unpaid credit cards look bad on a credit rating. If you have good debt, but too much of it, that can go against you as well. Strike a fair balance between paying off your old debts and making sure you aren’t getting any new ones.
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