Dec
21
People are in debt. Living in this world with bad credit can be difficult. It’s hard to repair your credit and it makes life difficult to have bad credit when you are making those large purchases.
Credit repair can be done, but not overnight. You must be patient and keep your spending in check. There are a few things that you can do to repair your damaged credit but you must be patient as you follow these steps.
The next time you order your fancy coffee at the drive through, think about this, How much a month do you spend on just coffee? A typical fancy coffee costs about $3-$4. if you have 4 a week, that’s $12-$16 a week or $48-$64 a month! The key to credit resolution is budget. Cut back on frivolous purchases and put the money towards paying your debt off. It’s hard but necessary.
Equifax, Experian, and Trans Union are the three credit reporting agencies that report to FICO. FICO is who keeps your credit score and reports it to the banks. You should get a credit report from all three agencies. Your bank will give you a free report every year if you ask for one; otherwise you can find an online solution.
You need to contact the creditors that you owe. This is so you can try and negotiate a payment plan. You can haggle with them about interest and monthly payments. Then when you get an agreement, have them send you the agreement in writing.
Now you need to close out and pay your credit card debts. Destroy the cards and start paying them off. The best idea is to close all the accounts you have except your three oldest ones. You see, credit scores are based on the account history as well as other factors. Even if these lines of credit are opened, you don’t need to use them unless it’s an emergency.
You must make all your payments on time and avoid bankruptcy. It’s a good idea to join a credit union as well. They offer a better chance of giving you a consolidation loan if you want to go that route.
Mail this post
Comments
Leave a Reply
You must be logged in to post a comment.