Credit Repair Help – It’s Not As Hard As You Think!
It’s really hard to go and live in this world with bad credit. People everywhere are in debt and in need of help. What are you supposed to do when you want to make that big purchase and the loan gets denied?
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.
First thing to do, must do is create a budget. This will allow you to know how much money each month you can spend on your debts. It’s best if you document for one month your spending habits. You never know how much you spend eating out and buying fancy coffees.
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.
Contacting the creditors is the next step. You need to speak to them to offer a payment plan. They will be willing to work with you because they want the money owed to them. If you offer to pay off the full balance and settle right then and there, usually they will give you a discount and ask you only pay the principal. Any agreements should be mailed to you in writing.
It’s time to cut the cord, er cards. It may feel painful at first, but it soon will be liberating. When you get rid of your credit cards, be sure to pay off and close the accounts. Credit history is important for your FICO score. It’s a good idea to keep two or three lines of credit opened up so you can keep your established credit history.
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.
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