You might wonder over the need for credit consolidation, if you have been just letting life get on. Credit consolidation is one of the major steps taken to improve credit rating. A good credit rating is like having a golden goose that lays gold eggs. A fine credit score helps us to enjoy conveniences and comforts such as owing property, credit cards, and qualifying for financing etc. On the other hand, not making timely payments to creditors can get you in a quandary. Not only do they hassle you with their harassing phone calls and collection agents, your credit report is also adversely affected.
Step-By-Step Credit Repair
The first step towards credit repair is to procure your credit report from the credit-reporting agency. Once, the credit report is in your hand, check and double check it for any inaccuracies. Most often it is discrepancies in these credit records that are a blemish on your credit report. If you find any errors make sure that they are taken off your credit report as early as possible.
A Quick Fix Solution Towards Credit Repair
Your credit report is a reflection of your debts and payments. If you think that the world has come to an end, as nothing can be done about your credit score, think again. How about contacting your creditors for a talk over your outstanding dues. After all, they are also human, surely if you are genuine in your promise to make timely repayments, they might like to offer you a second chance.
If your dues are a large amount and you have not been making any payments in time, your creditor would file a complaint with the credit-reporting agency. But with timely efforts if you can prevent him from filing a report against you and suggest some alternative solutions like credit consolidation, your creditor might be willing to listen. You might wonder why the creditor is being kind enough! Is it because you are so desperate? No! This is because; your creditor would at least get some payment from you in this way, rather than no payment if you just simply decide to file for bankruptcy. So when you met your lenders, propose a realistic plan to show that your intentions of making payments are honorable. Thereafter make sure you stick to your promise.
The Dire Consequences Of Ignoring Credit Consolidation
If you break your promise to yourself and your creditors, and do not go ahead with credit consolidation, you might lose his favor, as he would not trust you anymore. Moreover, when this happens get ready to face the music. Your overdue debts would be handed over to the collection agencies. Collection agents are known for their aggressiveness. Their threats to take you to court will give you gory nightmares. As collection companies buy debts from creditors at low prices, they ensure that they get the debts out of the debtors to make a tidy profit. No one suffers in the bargain, just you and your family.
Therefore, it makes sense to negotiate with your creditor to pay the amount that you can towards your debt rather than deal with collection agents. Most of the time, creditors agree, as they too do not want the process to drag on. All they want is the money that is rightfully theirs.
As soon your creditors give the nod for a go ahead, the first thing that you should do is go for credit consolidation. Find a non-profit credit consolidation company to seek the assistance of a credit counselor. A credit counselor will tell you the importance of credit consolidation and will counsel you on how to stick to your long-term credit repair plans.
What, Where And Whom To Watch Out
Of all the credit repair options that you zero down on, avoid the credit repair companies that ask for a fee to even look at your documentation. Such companies are frauds. They would offer lucrative deals for credit repair, but credit consolidation with such companies would definitely be a risky option. For all you know, they would give you a patient ear, win your trust and then run away with your money.
Slow And Steady Wins The Race
It is a matter of pride to have a good credit rating, but some unwise decisions and large spending can destroy your credit even in just a short amount of time.
There are really no quick solutions to overcoming poor credit scores. Once you are caught in it, you have to make efforts again from scratch, step by step, slowly and patiently towards a good credit rating. Credit consolidation can go a long way in helping you achieve this objective. If you avoid short cuts and diligently focus on a long-term credit repair, you will ultimately gain your good credit back. However, do not let go of it, once you have it again. No one knows that better than you know, after all once bitten is twice shy.