Having bad credit can be stressful and annoying. It’s one of the main stumbling blocks to a successful life. It can take take away choices and stop you from enjoying wonderful opportunities. Here are a few steps you can take to restore and protect your credit score.

Having poor credit makes financing a home a nightmare. Look into alternative financing options like FHA loans. Some FHA loans even cover a down payment or your closing costs.

You can dispute inflated interest rates if you are being charged more than you should be. There are laws that protect you from creditors that charge exorbitant interest rates. However, the contract you signed ensured that you agreed to pay off your interest. Your interest rates should be regarded as too high if you plan on suing your creditors.

Consumers should carefully research credit counseling agencies before choosing one with which to work. There are some counselors that are real, while others are basically scammers. Some companies you may find are outright scams. If you’re smart, you’ll make sure the credit counselor is not a phony first.

Do not do things which could cause you to go to jail. Sites may act like you can create new credit lines and tell you how to do it. Doing this is illegal, and you will be caught. Taking these short cuts will end up costing you money and could lead to a stay in jail.

Dispute every error you identify on your credit report. 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.

Start living within your means. You need to change your way of thinking in this regard. While you may see your peers racking up credit debt, be sure to not fall into the same trap. You should look at what you can afford to spend, before using credit for purchases.

This will make sure that you maintain a good credit status. Every time you pay late it is put on your credit report and will hurt you if you ever need a loan taken out.

Credit Score

The tips within this article will help you repair your credit score and continue to have control over your debts. Having a solid credit score can impact many important purchases that you make, so taking time from your busy schedule to read up on this subject is always a good idea.

There are tremendous opportunities for small businesses and social entrepreneurs to support their communities through community foundations, donor advised funds and other means of giving back. Find the neighborhoods in Chicago, Illinois where you can make the most impact on the youth in the community.