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| (Image courtesy of valariecareyerm, flickr.com) |
Easy Credit Fixes For You
Now that the economy has taken a downturn, even more people are struggling to maintain good credit. Repairing credit does take a lot of time. However, there are steps you can take right now to make sure your credit starts heading in the right direction.
You should keep and eye on your credit report by checking it several times a year. The major credit bureaus are obligated to give you one free copy of your credit report each year, and you can get this from several different online sources. You cannot begin to repair your credit if you don't know which parts of your credit are "broken" in the first place.
Keep in contact with creditors in order to work out a payment plan for your debts. You can save a great deal of money by avoiding hefty penalties and interest accruals. After making suitable arrangements to repay certain debts at a later date, you can then focus on paying off those accounts which must be immediately addressed.
Scour your credit report thoroughly to make sure it doesn't contain errors. Go through the report with a fine-toothed comb to locate any mistakes or inaccurate information. You should get in touch with your credit reporting agency if you notice a mistake. When you dispute these errors, they may be removed, which will improve your credit score.
Make sure you protect yourself by knowing your rights when you are dealing with collection agencies and creditors. Collections agencies do not have permission to threaten you, and you cannot be taken to jail for non-payment of a bill. Make sure you know what the laws are for where you live as they vary from state-to-state. Do not let these collection agencies intimidate you.
Make sure that your credit card balance is at 30 percent or under. By keeping your balance low, your payments will be low too. Going above 30 percent is not advised.
The ideal method in managing your bills that have already been turned over to collections is to develop a plan to pay down your debts. Try to arrange your payment plan before your account is turned over to collections. Do not put off speaking with the collection agencies, or you could make the problem bigger than it needs to be. Talking to debt collectors allows you to work out a payment plan. Tell them what is going on, and be honest about how hard things are for you. Many creditors will be happy to set up a payment plan, or in some cases, reduce the total amount that you owe. If you are willing to negotiate and have a legitimate desire to pay your debt, creditors will usually try to work with you to figure out something that benefits everyone.
Using the advice given here will keep your credit at its peak. Begin repairing your credit ASAP by following these DIY credit repair tips!
