Whether you got your credit cards on your college campus, went shopping too many times or suffered from the bad economy, you’ve probably damaged your credit. Luckily, there are some things you can do to make things better. Here are just a few of the ways you can do that.

Financing homes can be made more difficult when your credit score is low. There is, however, alternative types of funding available that are offered by the banks. FHA and USDA are two such agencies who offer finance to those with lower credit scores, sometimes with low down payment and closing cost clauses. If you do not have a down payment or money for closing, consider a FHA loan

When you have a good credit rating, you will be able to easily get a mortgage loan. Timely mortgage payments augment your credit score. Credit rating companies will judge you a reliable risk when you have verifiable assets such as a home. If the need arrives to obtain a loan for any reason, this will be a valuable asset for you.

Installment Account

To improve your credit rating, set up an installment account. You should make sure it is an installment account that you will be able to pay into every month. Paying on time and maintaining a balance will help improve your credit score.

An important tip to consider when working to repair your credit is to work closely with your credit card companies. Avoid collection to improve your credit score. Contact your credit card company and request to change your scheduled due date or interest rate.

Make sure you thoroughly research into any credit improvement agency or counselor before you do business with them. Many counselors are on the up-and-up and are truly helpful. Others just want to take money from you. Some credit services are nothing more than fly-by-night scams. Smart consumers make sure that a credit counselor is legit before starting to exchange any money or sensitive information.

Don’t get involved in anything that could get you arrested. Creating a new credit score or using a different identity seem like easy solutions but bad credit is not worth taking this kind of risks. Of course, this highly illegal, and it will cause you even more problems, because it will not go unnoticed. Not only can legal fees add up, but you could end up in jail.

Ask credit companies to lower all of your card limits. This will stop you from racking up giant credit card bills, and show lenders you are responsible.

If you are doing hardcore credit repair, you need to scrutinize your report for negative entries. The debt itself may be legitimate, but if you find errors in its metadata (e.g. the date, amount, creditor name), you might be able to get the whole entry deleted.

One way to increase your credit score is to become a member at a credit union. Credit unions focus more on the local situation instead of the national one, and may provide more options or rates that are more favorable than those of a larger bank.

If you find a mistake on your credit report, be sure to dispute it! Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Ask for a return receipt so that you can prove that the agency got your package.

Fixing your damaged credit may seem like an overwhelming task in the beginning, but with a bit of work and a bit of guidance, you can turn things around and get your credit back on track. Take the advice that has been provided in this article to start making positive steps toward better credit.