People think they can join the FHA mortgage loan programs or get help from loan modification companies and their financial problems would be solved. Well, there is still the matter on how to repair bad credit score. Let us make one thing clear first. Strictly speaking, there is really no known quick fix available for a bad credit score. At best, we can just correct the mistakes that credit reporting agencies commit in order to increase our FICO score. But in any case, here are some of the best things that you can do along with the things that you should be aware of when you are in a credit rut.
First principles for a healthy credit score
Never be late with your payments. Let me repeat that. Never be late with your payments. Late payments are the leading cause of bad credit for many people. This is the leading cause of bad credit score. Neither the FHA programs nor the loan modification companies can help you with this bad habit. And besides, this triggers increase in interest rates which makes it harder for you to pay on time.
Keep your balance low
The second largest impact on a person’s FICO is how high the credit balance is. Try to keep it on or just under 29% of your credit card limit so that you can ensure a healthy score. If you have various credit cards with balance in them, make sure to bring the ones with highest balance to the thirty percent range.
Tax Liens, Judgments, Bankruptcy, and Foreclosure
If there are any monsters that can really gobble up your good credit score, then these are it. When dealing with tax liens, judgments, bankruptcy, and foreclosure, you are dealing with things that would bring your credit score down for a very long time. Avoid them as long as you can. If you have foreclosure problems, consult with fha programs for a fha mortgage loan or seek help from reputable loan modification companies. But if you do have them, you will have to make extra effort. The only real way anyone knows how to repair bad credit score in these cases is to demonstrate a revitalized payment record.
Defaults for student loan
If you have defaulted on your student loan, do not fret. There is a chance for you to remove it. You need to speak with your creditor in order to find out what you can do to get your student loan out of the default status. People can usually pay for some months worth of payments and then their student loan can be go back to the current status.
So there you have it. People will likely try to look for more solutions. FHA programs, FHA mortgage loan, loan modification companies can only help you so far. Most of the work on how to repair bad credit is in your hands.
First principles for a healthy credit score
Never be late with your payments. Let me repeat that. Never be late with your payments. Late payments are the leading cause of bad credit for many people. This is the leading cause of bad credit score. Neither the FHA programs nor the loan modification companies can help you with this bad habit. And besides, this triggers increase in interest rates which makes it harder for you to pay on time.
Keep your balance low
The second largest impact on a person’s FICO is how high the credit balance is. Try to keep it on or just under 29% of your credit card limit so that you can ensure a healthy score. If you have various credit cards with balance in them, make sure to bring the ones with highest balance to the thirty percent range.
Tax Liens, Judgments, Bankruptcy, and Foreclosure
If there are any monsters that can really gobble up your good credit score, then these are it. When dealing with tax liens, judgments, bankruptcy, and foreclosure, you are dealing with things that would bring your credit score down for a very long time. Avoid them as long as you can. If you have foreclosure problems, consult with fha programs for a fha mortgage loan or seek help from reputable loan modification companies. But if you do have them, you will have to make extra effort. The only real way anyone knows how to repair bad credit score in these cases is to demonstrate a revitalized payment record.
Defaults for student loan
If you have defaulted on your student loan, do not fret. There is a chance for you to remove it. You need to speak with your creditor in order to find out what you can do to get your student loan out of the default status. People can usually pay for some months worth of payments and then their student loan can be go back to the current status.
So there you have it. People will likely try to look for more solutions. FHA programs, FHA mortgage loan, loan modification companies can only help you so far. Most of the work on how to repair bad credit is in your hands.
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