Take Some Tips With You On Your Credit Repair Journey With so many people suffering hardships, such as job loss and higher living expenses, that make it difficult to survive, it comes as no surprise that so many have poor credit scores. Thankfully, these hints will give you some valuable insight into how you can proceed to build better credit ratings. Financing a home can be difficult if you have bad credit. FHA loans might be a good option to consider in these circumstances, as they are backed by our federal 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. Fixing credit reports must begin with a solid working plan that you are capable of adhering to. Be totally committed to changing your spending habits. If you don't need something, don't buy it. Ensure that you can afford everything you buy and that you really need it. If your credit does not allow you to obtain new credit, getting a secured one is much easier and will help fix your credit. You are more likely to be approved for this type of card because, once funded, the banks feels secure that you will pay them back. A responsibly used new credit card will begin healing your credit score. It is easy to get a mortgage for a house if your credit score is good. If you pay your mortgage as agreed, your credit score will rocket into the stratosphere. As a homeowner, you will have a major asset that can have positive effects on your credit profile. This will also be useful in the event that you end up needing to borrow funds. Don't get involved in anything that could get you arrested. You should steer clear of internet programs that show you how to clear your credit. This tactic is not legal, and you face serious repercussions if you are caught. The criminal charges that you face will be very expensive, and you may also have to serve prison time if found guilty. Ask credit companies to lower all of your card limits. By doing this it will stabilize you in your financial boundaries instead of letting you extend beyond what you really should. Learn what affect a debt settlement plan will have on your credit rating before you sign up. Do some heavy researching before starting an agreement with any creditor; there are other options that may not damage your credit score as heavily. Many collectors just want to get paid and don't care about credit consequences. Joining a credit union can give you opportunities to increase your credit score. Credit unions typically offer a wider variety of credit options at better interest rates than a traditional bank. Credit unions are usually non-profit, which means better deals for you.