Each one of us has more than likely encountered financial woes in life. This has more than likely affected your credit. Do not let this get you down. With some perseverance and dedication, you can overcome this atrocity. The following are steps one can take to rebuild their credit.
Do Not Ignore Your Creditors
If you are behind on your bills, no matter what the bills entail, make sure you do not merely ignore the late notices or the calls from creditors. Are the calls from creditors annoying? Yes, they are however, they are not going away just because you are ignoring them. You must face your creditors.
Make Payment Arrangements With Your Creditors
Sometimes creditors will cut the overall total of a debt you have with their company if you pay the debt in lump sum. If you can pay off the debt in this fashion, this is wonderful however, most people cannot. Make sure you make realistic payment arrangements with the creditors. Set a realistic goal of paying off the debt with realistic payment arrangements. In time, you will be able to eliminate this debt.
Get Copies of Your Credit Report
There are three credit-reporting agencies within the United States, which are Transunion, Equifax and Experian. Obtain credit reports from all three credit-reporting agencies.
This will cost a small fee but keep in mind that some US states offer a free credit report annually. Make sure you research this before paying for your credit reports.
Scan Your Credit Report Carefully
Upon receiving all three of your credit reports, check them very carefully. Scan through the pages and acknowledge the debt that is shown on the credit reports. If you view something that you do not recognize, make sure you circle it and call the numbers listed for that particular debt. Ask to speak to someone in charge while informing him or her you do not acknowledge this debt. Upon performing this, it is now up to the creditor to prove you owe the debt, if they cannot prove you owe the debt, by law they have to take it off your credit report. Keep in mind most creditors can prove you owe the debt but there are times things do indeed pop up on people’s credit reports, which they do not owe.
Make Payment Arrangements for the Debt Shown on Your Credit Report
You might want to consider a consolidation loan to pay off the debt shown on your credit report. If you do not qualify for such a loan, then just buck up and make payment arrangements with your creditors. They will work with you on arranging payments.
Credit is very important. Everyone goes through hard times but this does not mean that you have to live your life without good credit. If your credit has been damaged, simply fix it and in time, your credit report score will improve with leaving you with less stress and more confidence with financial matters within your life.