Tuesday 15 May 2012

Repair Your Credit Today With These Five Tips

By Francesca Jones


You will need to do repairs to your credit and you are not the only one. The ideas presented here will offer up some suggestions to repairing your credit.

Before you do anything else, you need to actually view your credit report so that you know your credit score with certainty. You can obtain credit reports for free online. By knowing what is on your credit report, you are better able to determine how you can mend it.

It is possible that you can pay certain bills late or pay in installments. You need to contact your creditors and try to make arrangements. If you know what you must pay now, you will be able to avoid paying penalties and interest fees. This will save you a great deal of money. Some of your accounts may be flexible on due dates or setting up a payment plan, allowing you to focus on debts that need attention now.

Get a copy of your credit report and make a list of any negative items. When you receive and review a copy of your report you may even find some incorrect items. Once you know the reasons for the decrease in your credit score, you can work on resolving the issues and repairing your credit rating.

Make sure you research your rights when it comes to collection agencies. Were you aware that you cannot be imprisoned for failing to pay a bill, or that collection agencies are prohibited from threatening you? While states have varied laws, most consider abuse or threats to be illegal. When it comes to collection agencies, you should always actively protect your rights.

The balance on your credit cards should stay lower than 30 percent. This will help you to make the payments since they will be quite low, too! A balance over 30 percent may be harder for you to pay, and this can hurt your credit.

The best solutions available to you are to either make payment plans individually with each debt collector, or you can contact a debt settlement agency that will lump all your debts together so you can make one monthly payment. Usually, collectors are willing to make payment arrangements with you. You debt will not disappear if you ignore the bill collectors. When you finally choose to meet with them, they might not be so accommodating to your needs. Collectors will work with you if you let them know you are trying to pay off your debt. You can sometimes even get them to lower your debt to half of what you originally owed. Working out arrangements with debt collectors means cooperating with them. Otherwise, instead of working out a reasonable agreement, your balances will continue to grow.

You can start improving your credit with these tips. Start rebuilding your credit with these tips.




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