It’s no surprise that there are so many people facing the hardships of bad credit today given the current state of the economy, yet don’t become discouraged because of this. Luckily, these tricks and tips can show you how to have a better credit score.

If you are buying a home it will not always be easy, and even more difficult if your credit is bad. If possible, apply for an FHA loan; these loans are backed by the United States government. FHA loans offer lower down payments and help with closing costs.

Creating a payment plan and sticking with it is just the first step to getting your credit on the road to repair. You need to make a commitment to changing your spending habits. Only purchase something if you cannot live without it. Only buy something if you have to have it and you can afford it.

Interest Rates

Excessive interest rates can be contested. However, it is best not to sign contracts containing them in the first place. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. It is important to take into account the fact that you did sign a contract and agreed to pay off the attached interest. If you’re going to try taking your creditors to court, make sure you can prove the interest rates they charged were excessively high.

Start paying your bills in order to repair your credit. Even more important than just paying your bills, is to pay off the entire balance, and pay them on time. Your credit score will increase if you are consistently paying back your debts.

Credit Score

Now that you know how to improve your credit score, why wait? The faster you act, the less likely your lowered credit score will permanently affect your life.

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 Erie, Pennsylvania where you can make the most impact on the environment in the community.