Fixing Bad Credit

Good credit is essential in ensuring you have the means to purchase a home, a car, or even secure a good job.

Devastation can occur in families with bad credit. You can be denied financing for a mortgage or pay increased interest rates vs. those with good credit. When job searching, employers often review credit ratings to determine if you are responsible or an at-risk individual. If you fit into this category; don’t stress, credit can be improved over time and with some due diligence on your part. Here are some helpful tips.

Request a credit report from all 3 major bureaus to determine your actual credit rating and determine if you have any issues with your creditors. In most cases, lenders will report if you have defaulted on a payment, have been late on a payment, or are over your credit limit. You must determine where the issue exists before you start to fix your credit. Once you have determined the source of the bad credit, you can contact your creditors to proactively address the issue.

Creditors are understanding; contact them if you are unemployed, suffering from an illness or injury, and any other extenuating circumstance. This alerts the creditor you may miss a payment or possibly be late on a payment. Many creditors will attempt to work with you by lowering your minimum payment or allowing you to skip a few payments until your situation improves.

If it is determined that your credit is unsatisfactorily listed, contact your creditor and work out a payment arrangement with them. You can pay as little as $20 monthly, this will let the creditor know that you are diligently working to pay off your debt and acknowledge that you owe the money.

Most problems can be resolved by addressing the situation with the creditor and working out a payment plan. This will also avoid the creditor cancelling your credit card and is less damaging to your overall credit.

If your damaged credit is attributed to identity theft; contact your creditors and request information regarding specific charges. You may have to contact an attorney to ensure you are fully educated on your rights. Most identify theft cases take several months to resolve and are quite complex. If you have been a victim it is definitely worth the time vested to ensure it is resolved accordingly.