Keeping track of who you owe and what you owe can help prevent formation of debt. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. Here are some relatively easy and effective ways to improve your credit.

Financing a new home can be a challenge, especially if you have a history of bad credit. FHA loans are good options in these circumstances, because the federal government guarantees them. You may even be able to secure your down payment and closing costs through an FHA loan. It depends on if you qualify.

You will be able to buy a house and finance it if you maintain a good credit rating. Paying mortgage notes on time will keep your credit scores high. When you own your own home it shows that you have assets and financial stability. Having a home also makes you a safer credit risk when you are applying for loans.

If someone promises you to improve your score by changing your factual history, this is a scam. Unfortunately, this negative information stays on your credit record for at least seven years. You can, however, succeed at having incorrect information erased from your credit reports.

When you are trying to clear up your credit contact your credit companies. This prevents you from sinking further into debt or further damaging your credit score. Call them and see if you can change the payment terms. They may be willing to change the actual payment or move the due date.

Before using a credit counselor, it’s important to research them completely. While many counselors are reputable and exist to offer real help, some do have ulterior motives. Some companies you may find are outright scams. Wise consumers always verify that credit counselors are legitimate before dealing with them.

As this article has spelled out, fixing your credit is not rocket science, and it may be easier to do than you think. Following these simple steps and credit improvement will no longer be a distant dream.