The first thing you want to do is check both your credit report and score. You are entitled to one free credit report a year, but may have to pay for your credit score. Knowing just where your credit stands is the logical, vital first step for credit repair.
Ask your creditors if they’re willing to defer payments or set up a monthly payment plan. Learning when late payments can lead to penalties will help you make smart choices about when to pay your bills off. You can focus on the creditors that will make additional charges to your account, and arrange payment plans with the others.
As you review your credit record, write down all negative issues so you can review them for accuracy. If any inaccurate information appears on your credit report, take the time to reach out to the business reporting the information and have it updated or removed. It is helpful to have all the particulars of a negative entry handy, even if it is accurate.
To make dealing with debt collectors less stressful, it is important to research the laws in your state regarding collection agencies, and the tactics they can use. Laws vary by state, but in many places, agents cannot intimidate, threaten or verbally abuse you. You should also know that they can’t send you to jail for failing to pay a bill. Know your rights and make sure that your agency’s actions are legal and welcoming.
Keep the balance on a credit card below 30 percent of its limit. This will help you to make the payments since they will be quite low, too! If your credit utilization is over 30 percent, this can signal that you not be able to pay it all back, which can lower your credit score.
If you have a lot of bills that are now in collections, think about setting up a payment plan. Agencies are happy to work with you, if you show interest in working with them. If you ignore them, however, your debts will remain unpaid and the agencies will be less likely to work with you amicably. Often times, these agencies are capable of reducing the amount you owe by a significant amount. Any reduction of late fees and interest you are paying will be worth looking into.
Get your credit fixed now! The suggestions provided can help you to quickly improve your credit.