Why Is Credit Repair So Important?
You have most likely done damage to your credit, whether you got a card from friends, went on too many shopping trips or were hit by economic pressures. Thankfully, there are things you can do that can help you correct this problem and increase your credit score.
Create A Credit Repair Plan Of Action
The first step in credit repair is to build a plan. In this plan you need to make a commitment to making better financial decisions. Create a budget you can live with. And make an effort to buy only the things that you need. You should only make a purchase if it is necessary and it fits in your budget.
Call Your Current Creditors
Many credit card companies are willing to help customers by eliminating late fees or lowering monthly payment amounts. Talking to them will help keep you from drowning further in debt and making your credit worse. One way to tackle this problem is to call them and ask if you can have the due date or monthly charge amount changed.
Time To Put On Your Negotiating Hat!
Next, make a list of your credit cards and the interest rates you are paying on each one. You can dispute inflated interest rates if you are being charged more than you should be. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Your initial agreement likely included a commitment to pay interest. Be very wary of suing your creditors, especially if all of your issues were covered in the contract.
Find out how your debt settlement contract will make your credit score look. Some agreements won’t hurt you as much as others. This is why you should research all of the available ones for you before signing an agreement. They are just out to get their money and do not care how that effects your credit score.
Already In Collections?
Always try to negotiate with the original creditor. Even if its already with a collection agency, its well worth the effort to call the original creditor and try to negotiate with them. If they state they can’t work with you because its already been turned over to a collection agency, then go back to negotiating with the collection company. Don’t let them treat you poorly. Remember you have rights! Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt.
It can be stressful to try and figure out how to improve your credit, but if you keep at it, you can make things better and see the results you want. Use what you have read here to get back on track with your credit.