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Consolidate Credit To Stop Getting Turned Down

Consolidate Credit To Stop Getting Turned Down

If you have been applying for credit and always being turned down, that is because your credit report has negative information on it. Time to do something about that! Your credit file is the information kept by credit reporting agencies concerning your record of payments to creditors. There are three major credit reporting agencies that perform these services for companies who are interested in finding out how good or bad a risk you are. Whenever you apply for a loan, try to rent an apartment, and even apply for a job, you can be sure your credit report is being looked at. Time to consolidate credit and do something about your personal finances if you have a bad credit report and you get declined for any of these.

Your credit file is built up over the years by the credit reporting agencies that keep track of all of your bills and your bill-paying habits. If you have been in the habit of missing payments, being late, or just forgetting to pay, that will all be in your credit file as marks against your credit. These will result in lower credit scores, and lower credit scores mean you will not have a very good chance of getting a loan, or some other things you might be interested in, such as an apartment or a job. The opposite will also happen: if you are consistently a good payer, you can be sure you will be able to get a car loan, mortgage, credit card line, or just about anything else from a lender.

With so many people filing bankruptcy these days or using debt management programs, the lending companies lose money. So they want to avoid risks with people who may end up in bankruptcy. A bankruptcy ruling will stay on your credit record for ten or fifteen years. Debt management companies help you temporarily, but you are extending your debt and paying more fees, so it is harder to get out of debt.

You do have some protection under the law, but if you have bad credit, you will never really breathe easy until you can completely clean it up. In addition to a negative credit report and low credit number, we are also going to be facing judgments, foreclosures on a home, or repossession of goods, and even perhaps lawsuits. No one wants to risk being homeless and penniless. You know you have to find a way out.

What if you are in a situation where you cannot make a living, such as if you are on welfare or on disability? Look at any option you can to repair your credit. If your car is too expensive, find a cheaper one. If your home is too expensive, you may have to size it down to the one you can afford. Once these big expenses are eliminated, you can start to pay down debt and get your credit report back on track. This is the only way you will stop being turned down for credit.

Consolidating Debt – Investing In Debt Management

Consolidating Debt – Investing In Debt Management

John Dewey had quoted that a person’s money had more value than their credit. However, today’s creditors, like banks, do not share the same view. A good credit file report history is essential for obtaining personal loans thus, consolidating debt might be one of the next options. However, the inability to repay personal loans causes people to avoid calls from debt collectors and to miraculously pretend to forget any debts owed to their creditors.

The resulting fact is that all your banking, financial, purchasing, credit and store card, and other credit history is reported to credit bureaus by your creditors and recorded on your credit file. This file is designed to assist creditors, like banks, to evaluate your credit history and any risk you may pose in regards to repayments.

Bad credit is not a dead-end street, and you can repair and rebuild it in time with the proper management of your finances. However, one or more bad credit reports on your file will have you blacklisted by the banks, destroy your credit score, and stop you from investing in something you want, like a car.

A creditor’s negative credit report takes up to 7 years before it is removed from your credit file. However, you still need at least one year of good credit reporting after that before you can start getting credit or personal loans again. To avoid waiting 7 years for the item you want, like a car, even though you may have a very good income and professional status, consider a problem-free, loan for those with bad credit. Simply, apply to consolidate debt, your debts.

A debt management loan for those with bad credit does have a higher rate than normal personal loans. However, such a loan focuses on your current situation and regular and steady employment, whilst ignoring your past credit report history.

You benefit from promptly fixing your credit report history and credit score, and you can start to rebuild your life. You have the opportunity to work towards buying a home or negotiating a lower interest rate on your credit cards.

If you make your payments when they are due, the bad credit history personal loan will work for you. Without this, you cannot benefit from any major purchases you wish to make, like buying a car. This loan will work if you make it work.

Again, bad credit report history is fixable and not the end of the line for you. Most people have experienced bad credit at least one or more times in their life. Now is the time to rebuild and create your positive credit future by considering the benefits to you by using a bad credit history, personal loan, and the workable interest rates they provide. Need to learn more important benefits of consolidating debt? We can help!

Credit repair is as important as getting out of debt

Credit repair is as important as getting out of debt

Avoiding complications in credit repair is almost important as getting out of debt. When we have bills that were neglected simply because we didn’t have the money to pay the bills, or else we purchased items instead of paying the bills, we are in debt.

If you are considering a Home Equity Loan to get out of your current mortgage, don’t. Why? Simply because most Home Equity Loans get you deeper in debt and once you are obligated you will find the problem is more complicated than when you applied for the loan.

Lenders often target homeowners with financial difficulties offering them high-interest rates and making them believe it is a solution for debt relief. In most cases, this is where foreclosures come in, or selling homes come into place. The solution is only an option to get you in debt deeper. One solution then is for homeowners to consider Reverse Mortgage Loans. This type of loan is often as equity against your home, belongings, and so on. The loan offers a ‘cash advance’ solution and requires that the owner does not pay on the mortgage until the end of the mortgage term or when the home is sold.

Most lenders provide a lump sum advance, a line of credit, or else a monthly installment to the homeowners. Some lenders even offer a combination to the homeowners. This is certainly a good solution for repairing your credit and building your credit to a new future. The downside is that Reverse Home Mortgage Loans often are more suitable for the older generation of people that have built equity over the years in their homes. Another disadvantage is that almost all home loans require upfront payments, such as title, insurance, application fees, origination fees, interest, and so on. Therefore, it pays to ask questions and shop around before taking out another loan to repair or build your credit. Fannie Mae Home Keeper Mortgage Programs are one of the many that offer a Reverse Home Mortgage Loan.

Another option for paying off your debts and repairing your credit is to borrow the money from family members or friends. If you have someone that trusts you enough to loan you the money to get out of debt, it is often better than getting a loan. There are several options or questions you must consider before asking family members or friends to loan you the money to build or repair your credit. One of those questions should be obvious. Can these people afford to lend me the money to get out of debt? Are these people kind enough to loan you money without putting high demands on you? Of course, there may be interest involved, but remember they are loaning you money they could be spending on their own bills. Is it possible that you can repay the loan without complicating your situation further? Can I repay these people that loan me the money to free myself of one debt? How long do I have to repay the loan? Make sure there are no extra complications before asking friends or family for money to help get you out of debt.

One of the best solutions for finding a way to repair your credit is searching for the options to make the money yourself. If you have a mortgage payment and struggling each month to make ends meet, you might want to sell your home. Many homeowners go for this option simply because they make more money in the long run. Once they sell their home they are often able to repay their mortgage loan and then take out a loan for another mortgage more affordable. If you decide to sell your home to repair your credit and get out of debt, be sure that you look around for the best possible solutions in order to prevent further complications.

Make sure you know how much is owed on your home before you set a price for resell. If there are any repairs that are minor or major, try to repair them first before selling. If you can’t afford to repair the home, try to do the minimal repair so that you can up the price of the home you are selling.

Get Your Credit Report and Know Your Credit Options

Get Your Credit Report and Know Your Credit Options

It is very important to get your credit report and analysis. Why is this important? For one thing, if you’re thinking about buying a house or looking for credit options for any other big purchase, you’ll need a clean credit report, and it’s always best to get your credit report and analysis before your lender does. This will give you an opportunity to clean up any discrepancies or errors, which are fairly common, and which can throw a monkey wrench in the works if not resolved.

Ideally, you should get your credit report and analysis once a year with each of the three credit bureaus:

You’re entitled by law to get your credit report and analysis for free from each of these three credit bureaus once a year. You can get all three at once or spread them out over the year. If you get your credit report and analysis more frequently than that, each report will cost no more than around $10 and in some states considerably less.

If you’ve been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get your credit report and analysis free of charge. Lenders are required by law to notify you of this right if they deny you credit.

When you get your credit report and analysis, review them carefully to make sure all the loans and credit accounts listed really belong to you, and that all the accounts listed as open are actually current loans or balances. If a loan you’ve paid off or a credit card that was canceled is still listed as open, contact the credit bureau and ask for your credit report to be corrected.

What is the Range of Possible FICO Credit Scores and What Do They Mean?

FICO credit scores range between 300 and 850. Ratings are as follows:

  • Excellent: Over 750
  • Very Good: 720 or more
  • Acceptable: 660 to 720
  • Uncertain: 620 to 660
  • Risky: less than 620

How is My FICO Credit Score Calculated?

The formula used to calculate your FICO credit score includes information based on several factors:

  • 35% on your payment history
  • 30% on the amount you currently owe lenders
  • 15% on the length of your credit history
  • 10% on the number of new credit accounts you’ve opened or applied for (fewer is better)
  • 10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

Will Your Scores Be Different and What are the Credit Options?

FICO credit scores range from about 300 to 850. It’s important to get your credit report and analysis so you can understand what your FICO score is and you know what credit options might be a great deal. Fair Isaac makes the scores as consistent as possible between the three credit reporting agencies. If your information were exactly identical at all three credit reporting agencies, your scores from all three would be within a few points of each other. But here’s why your FICO scores may in fact be different at the three credit reporting agencies. The way lenders and other businesses report information to the credit reporting agencies sometimes result in different information being in your credit report at the three agencies. The agencies may also report the same information in different ways. Even small differences in the information at the three credit reporting agencies can affect your scores. Since lenders may review your score and credit report from any of the three credit reporting agencies, it’s a good idea to check your credit report from all three and make sure they’re all right.

Usually, when you get your credit report and analysis from the credit bureau it will include a form for reporting any inaccuracies. Give as much detail as possible, and if you have documents that back up your claim, provide copies. By law, the credit bureau must investigate your credit report claim, but even if they decide your credit report is accurate as it stands, you should continue to try to correct the report by writing a letter explaining your side of the story (not to exceed 100 words), which the bureau is required to provide to anyone requesting your credit report.

When deciding whether to approve credit, lenders take the following into consideration:

  • Your payment history–do you pay bills on time?
  • Have you had a bill referred to a collection agency?
  • Have you ever declared bankruptcy?
  • How much debt do you have outstanding compared to your credit limits? The closer your debt is to your credit limit, the less favorable.
  • How long is your credit history? If you haven’t had much of a credit history yet, prompt payments are even more important.
  • Have you applied for more credit lately? Too many applications for credit has a negative impact on your chances for approval.
  • How many credit accounts do you have? Too many are considered negative.

Information is retained in your credit report for up to seven to ten years. When you get your credit report and analysis, if you have negative items in your history, you can gradually repair your credit by consistently paying your bills on time from now on, paying down your balances, and not taking on any new debt. Lenders will take your improved record into consideration when deciding whether to approve credit, especially if you’ve been paying on time for at least a year.

Getting A Home Loan With Bad Credit

Getting A Home Loan With Bad Credit

Everybody wants to be able to get a house one day, and in many cases, it can actually be cheaper than renting. So why should bad credit stop someone from getting the necessary home loan to be able to buy their house? The truth is that these days there are more than a few lenders who would be ready to give you, on certain conditions, the bad credit mortgage you want. Here are some details about it.

It is true that having bad credit will eliminate you from some of the best deals, but it does not eliminate you altogether. The first thing you need to do to ensure that you can get the best deal available to you is to look at your current credit report and check it over for incorrectly reported problems. These can easily happen and they are probably much more common than most people think. After you correct any inaccuracies, you can continue the process.

The next step would be to decide whether you believe you need to have a bad credit mortgage quickly, or if you want to take a little time to repair your credit rating. Of course, it is recommended that you repair your rating some and it will enable you to get a better deal.

Decide what kind of loan you want. You will need to know which one you want when you start making your application. There are basically two kinds, a fixed-rate mortgage, and an adjustable-rate mortgage. A fixed-rate mortgage remains the same in terms of interest and payments throughout the life of the loan. An adjustable-rate mortgage, on the other hand, changes every period (could be monthly or yearly) in terms of interest and payment amount.

Go to your bank’s mortgage officer, or look online and begin to see what you can borrow. Don’t get so excited, though, when a lender extends you an offer that you fail to compare with other offers. Truth is that there are many that will lend you money – but many will not be in terms you will want to accept. Look over all terms carefully, compare interest rates, and then all fees separately. Be careful about extra long terms – longer than 30 years. While it does lower your payments, it also definitely increases the amount you owe.

In order to get better deals, you should be able to put down at least 20% of the cost of the house. Also, you will want to use it in such a way that it should be the last time you will ever need to get a bad credit mortgage. Your credit can be repaired, but do not get a home loan bigger than what you may be able to safely handle. A financial counselor can advise you on what is the best way to arrange your finances and can recommend to you what is a safe amount of mortgage for you to handle. Remember, your home is now the collateral for the mortgage, so you will want to take care to keep your new credit levels intact.

Government Credit Repairs

Government Credit Repairs

If you are building a credit history, suffering bad credit, or else your credit is great, there are sources available that will help you maintain credit, repair credit, and build a credit history. If you have bad credit you must at least apply for two loans and be turned down before, the government will consider giving you a loan. Your credit report is not what is important, rather declines are the focus. Government credit is available to help people start a new business, loans for single parents, loans for education, and so on. The government offers loans to special individuals and often has 0% interest or low interest against the loans.

The government also offers grants to assist people in getting back on their feet again and the grants are yours. You do not have to repay the government anything, but you must use the money for what it was applied for. DC recently reported that there are new sources available that make it easy for families and individuals to repair their credit and get back on their feet again. When credit is bad, we have difficulty when applying for a home, car, apartment, credit cards, and so on. We are virtually disregarded in almost all cases. Today private lenders and the government are teaming up to make our economy more productive by helping those in need, including repairing credit.

Other resources are available to help those of us that are re-entering the employment market as well as helping those of us without jobs. There are funds available to those of us with low and high-risk credit scores. If you need a home, consolidate debts, car, or else start up your own business the government and private agencies are waiting to help you along. Reduced loans and free programs are available that will benefit millions in the economy that are suffering from bad credit histories.

Legal Aid is one source available that can help you with the repair of your credit, as well as many other sources and this source is free of charge in almost all cases. If you are paying, high fees to rent an apartment you might want to fill out an application with HUD. HUD pays a certain amount toward your monthly rent each month and you are required to pay the remaining balance. Think of the money you will have left each month to apply toward building your credit history. HUD also has a solution for first-time homebuyers with bad credit.

Under the Homebuyers Bill of Rights allows us the right to purchase a home if we have bad credit. The government resources and private institutes have lowered their Interest Rates to around 5% for homebuyers and extend up to $500,000 for first-time buyers helping them buy a home. The government and private institutes are also offering debt consolidation loans assistance with late payments, people that are starting a new business, and home improvements. Imagine the potentials?

It is often difficult for us when our credit is bad and not knowing where to start to repair our lives is even more frustrating. If you are suffering from bad credit, you might want to check in on a few options available to you that can help you get out of debt. Life does not have to be difficult and all of us make mistakes.

The Fair Credit Reporting Act (FCRA) offers us protection on our credit report. Our privacy, fairness, accuracy, and other laws say that we do have hope. If you are searching for a way to get out of debt you might want to start up your own business. The government has programs specifically for small business owners. The programs will help business owners to finance their business and guarantees loans to those that are creating a plan to support themselves as well as paying their taxes to the government. This is a wonderful solution for getting back on your feet again and getting those creditors off your back.

To find out more about small business loans, check us out. Bad credit is misery, but it does not have to be a force that destroys your life forever.

How To Use A Collection Agent To Repair Your Credit

How To Use A Collection Agent To Repair Your Credit

Your credit rating is determined by your credit report. If you obtain a loan from a bank, credit card company or another loan establishment, your ability to make your payments on time is reported to a credit reporting agency. Credit reporting agencies then compile this financial information into a personalized credit report, the key to a positive – or negative – credit rating. Any negative notations within your credit history will haunt you for up to seven years and could prevent you from getting another loan.

If you begin to fall behind with your payments to a creditor, the creditor will attempt to receive payment in a variety of ways. After a long series of “warnings,” your debt will eventually be sold to a collection company. The creditor basically “writes off” the loan, and allows the collection company to buy it at a drastic discount. The creditor has pretty much decided that they won’t recover the loan from you and will sell the debt for sometimes half of its original value just to end up with something. The creditor then informs the credit reporting agency, and you are stuck with a black mark on your credit report which stays there for the next seven years.

One extremely important step to credit repair involves taking steps to ensure that the creditor doesn’t “write off” of your debt. As soon as a collection agent contacts you, it is time to act. Don’t contact the collection agency – contact your creditor and try to make arrangements with them. Many times, if you can offer to repay the amount immediately, they can delete the “collection” flag from your credit history. This is the quickest method of credit repair.

If you can’t pay the debt all at once, or for some reason your creditor won’t accept immediate payment in full, you’ll have to deal directly with the collection agency. At this point, remember that that black mark on your credit score can’t get any blacker since the debt is in collections already, so be sure to consider your options before acting. Collection agents are usually aggressive and demanding, implying that they will end up in court if payment is not immediately received, and it can be tempting to do whatever they say to get them off your back.

But remember this: that collection company probably bought that debt at about half of the original value, so if you pay a higher amount than that, you are providing them with a profit. Offer to pay less than the full immediately. Many times, the collection agent will accept and want to wrap the situation up as quickly as possible so they can move on to the next debt.

You want to achieve successful credit repair quickly, so try to pay your creditor directly and have your “collections” negative mark removed. If your creditor refuses and you must work with the collection agency, try offering them less than the full debt amount. Usually, anything above half constitutes profit to a collection agent, so make a full payment for your last resort.

How To Repair Your Credit With Credit Cards

How To Repair Your Credit With Credit Cards

Very few people live their entire lives without inflicting any damage upon their credit scores. Whether it be high balances on credit cards, bankruptcy, collections issues, or financing troubles, credit problems affect the best of us and are difficult to repair.

Fortunately, there are solutions to repairing bad credit and restoring faith with credit agencies and bureaus. All it takes is a little time and the right strategy, and before you know it, you’ll be receiving “Pre-Approved” credit offers in the mail again. One of the most effective ways to repair your credit is with credit cards, and I’m going to show you how.

“Bad Credit” Credit Cards

Believe it or not, there are actually credit cards out there designed just for people who need to get back on their feet. Most of these cards have middle-of-the-road APRs with annual fees ranging from $40 – $100. Some also require an account set-up fee and other charges, which are expected with customers whose credit reports have black marks.

Credit Reporting

The most important thing to remember when repairing bad credit is that your card will not help unless the financial institution reports it. There are three major credit bureaus: Experian (1-888-397-3742), TransUnion (1-800-888-4213), and Equifax (1-800-685-1111). When you fall into collections or fall short of a loan, the financial center reports the debt to one or more of these credit bureaus, and that is how your credit is damaged. In order to repair that damage, financial institutions must also report accounts in good standing.

The best way to ensure that this happens is to find a credit card that reports monthly (or at least quarterly) to all three major credit bureaus. This way, your credit continues to improve exponentially as you continue to pay off all of your balances.

Balances

Most people believe that to maintain a good credit score, you must always pay off your credit card balance each month. This isn’t true. When you are attempting to repair damaged credit, it is much better to keep a small balance on each card and pay it off gradually over a period of three-to-four months. When you apply for a loan, mortgage, or line of credit, financial institutions want to see that you are able to effectively manage your finances. Keeping a balance and paying it off shows that you are able to manage your debt in an efficient and systematic manner.

Secure Credit Cards

If your credit rating is too low, then you won’t be able to obtain a Visa or MasterCard. Instead, apply for a secure credit card. This works similarly to a debit card; you deposit money each month, and that amount determines your credit limit. If you choose a secure card that reports monthly to the credit bureaus, then you will be eligible for an unsecured card in a matter of months.

With Secured credit cards, you deposit money into a savings account, and the amount you deposit acts as your credit limit. The amount can be anywhere from $200.00 to $10,000, and it acts as a type of security deposit. It is never removed from your savings account unless you become delinquent on payments, and it accrues interest the same way a normal savings account would.

Repairing your credit with credit cards can dramatically increase your chances of achieving an “A” credit rating, and you’ll be able to effectively manage your finances. Take the time now to research credit cards – both secure and unsecured – and make today the first step toward a better credit score.

How To Repair A Bad Credit History

How To Repair A Bad Credit History

We all get into financially tight situations from time to time. Short term financial demands can catch anyone by surprise. It could be around the birth of a new child, medical expenses, or just Christmas or birthdays. Whatever the reason, without care, financially tight situations can result in a bad credit history.

It’s possible to get a bad credit history very easily. The credit reference agencies, Experian, Equifax, and Transunion maintain details on almost every adult in the country and they have a level of detail that for many are frightening.

As a matter of course the credit reference agencies have your personal details, your name, address, and previous addresses, as well as credit information. If you have a mortgage they know about it. If you have any loans, credit cards, or store cards they know about them and they know what payments you make.

If you rent your home the odds are they know. In fact, they usually know the details of virtually all financial arrangements where there is any risk of a debt arising.

If you’ve applied for loans, credit cards, or any other purchases or financial arrangements they know you applied, even if the application was unsuccessful. They also know how much you borrow, your monthly repayments and if you are ever late with a payment – even if it’s by one day and caused by things outside your control!

How do they know? All the banks and financial institutions routinely tell them. The reason they tell them is that it is in their interest to do so. They know that by telling the credit reference agencies all the details an accurate picture of your financial position is created. A picture they can use the next time you apply for credit.

If you do miss a payment it will be recorded and that information stays on their records for 12 months! If you default that stays on for at least 3 years! Just missing a couple of payments can very easily mess up your credit score.

Once you have a bad credit history it can be a real nightmare. With a really bad credit history, you are pretty much financially disabled from everything except transactions that can be covered with cash.

Finding an apartment to rent, trying to buy a car, putting a down payment on a house, or applying for a credit card or a loan from a bank are all activities you are barred from with a bad credit history.

Banks, businesses, and decent landlords can see a bad credit history a mile away and will avoid you like the plague. As a result, all the steps that are supposed to build a good credit rating are no longer available. How can you break out of this credit catch-22 once you get stuck in it?

A good place to start is to contact a credit counseling service. Depending upon where you live there may be a free service you can use otherwise you may be forced to use a paid service. Paid or unpaid all these services do the same thing. They will conduct a complete financial assessment of your situation. It is imperative that you tell them everything, so don’t hold back any debts, they need to know.

If possible they will help you set a budget and find a way for you to repay the overdue payments, past debts, or forgotten bills. This will involve you paying extra to cover the arrears. Even if this is possible it will not, on its own, immediately repair your credit rating as the details of the missed payments and bad debts will stay on the record for at least 12 months.

If you are unable to clear any overdue bills or payments the counseling service will then approach your creditors. They will seek to come to some arrangement which allows you to pay smaller amounts over a longer period. They will initially seek an informal arrangement with each creditor but they can also seek formal arrangements where you pay an affordable amount, usually over 5 years.

So long as you keep up these reduced payments, and depending on the type of arrangement and where you live, after 5 years the debt may be cleared and your credit score will improve. Any arrangements with creditors will be notified to the credit reference agencies and are normally help on file for 3 or 6 years.

A third option, and the quickest, is to take out a consolidation loan to pay off all your debts leaving just one lower payment to make each month. If you own your own home – either outright or on a mortgage – this loan can be secured on the property either as a mortgage/re-mortgage or a separate secured loan.

With a property as collateral, it is relatively easy to get additional funds as the lender will have the security of your home and if you fail to pay, sometimes only one or two missed monthly payments, they will go for repossession to get their money back.

Without collateral obtaining a debt consolidation loan is more difficult but not impossible. Without the security of a property however, you will normally pay a significantly higher interest rate.

If you clear all of your debts using a debt consolidation loan cut up any credit cards and close the accounts. Make sure you don’t fall into the same trap again.

So long as you make all the due payments and you are in control of the situation, many of the pressures will ease and, with hard work and self-control, your bad credit history will become a thing of the past.

How To Contact a Creditor To Help With Credit Repair

How To Contact a Creditor To Help With Credit Repair

Good credit has become nearly a necessity these days. Credit has become almost essential to buying a car or a home (unless you have large amounts of cash lying around) and with the advent of online buying, it’s generally difficult to operate without some kind of credit card. Unfortunately, credit does cause problems for some people. Minimum payments on credit cards can be missed, or a loan could go into default and your credit rating will begin to slide. When you have negative activity, the creditor reports it a credit reporting agency, who then records it on your credit history. A tarnished credit report can be tough to clean up, as most negative items will remain to stay on your report for seven years before they expire and are removed.

If you have a bad credit history, you’ll end up dealing with previously unknown problems. You can’t rent a car or buy things online, renting a property will be difficult, and getting a mortgage may be impossible. It’s important to repair your credit as soon as you notice a problem because you’d be surprised at what kind of credit repair you can accomplish by being proactive.

The first thing you should do if you fall behind in your loan payments is to contact your creditor. This can be scary and many people take the opposite approach, avoiding “collection calls” out of embarrassment or even fear. Unfortunately, it’s best to deal with the problem immediately and to avoid long-term credit difficulties. Contact your creditor right away – as soon as you find you are having trouble with debt.

Remember the solution to your credit repair process starts with your credit report, and what is on your report is what your creditor reports about you. By contacting your creditor, you may be able to discuss possible payment plans or alternative solutions. It is in the creditor’s best interests to work with you, as if you go into default, they might never get paid.

There are many reasons that you should contact your creditor immediately, but most of all, it helps to speed up the credit repair process. Once you’ve contacted your creditor, suggest a payment system that works for both for you. Be sure to propose a payment plan that is realistic for you, and stick to it. Defaulting on these payments will look to the creditor as if you were just trying to stall and avoid further payment.

When you contact your creditor about your outstanding debt, be sure to remember that it is in your best interest to convince your creditor not to report your non-payment to the credit report agency. By facing up to your payment problems, contact your creditor right away, and creating a payment system that will work for both of you, you are taking a very effective step credit repairing your credit.