There are many reasons why you may have a poor credit history. Credit cards could have been your primary means of support while you were gaining an education, a passion for shopping may have gotten the best of you or the decline in the economy might have left you jobless for a time. The good news is that there are some things that you can do to repair it.

Having poor credit makes financing a home a nightmare. An FHA loan can be helpful in such a case since the federal government backs these loans. Even when the resources for making down payments or paying closing costs are lacking, FHA loans can help.

If you have to improve your credit, make a solid plan and follow it. Make a commitment to making better financial decisions. Don’t buy the things that aren’t needs. Before making any purchase, determine if it is within your means and if it is indispensable. Don’t buy the item unless you answer “yes” to both of these questions.

Secured Credit

Secured credit cards are an effective way for you to start rebuilding your credit. When you open a secured credit card account, you place money on deposit to cover any charges you may make. This ensures in advance that you will have enough money to pay for your debt. If you show a good history of payments with this card, it will help improve your credit standing.

If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. If your credit card balances exceed 50% of their limits, it will lower your credit score, so spread your debt over multiple cards, or better, pay down the balances.

With some instruction and some hard work you can help your credit get back where it needs to be, so don’t be fooled by how hard it may seem. Apply the advice from this article to start your march toward better credit score days.