Monday 15 July 2013 - Filed under Variety
Examine your credit report to see who exactly you are in debt with and who has been reporting missed payments. Ensure there are no mistakes and start to work on those items that are correctly listed. The best strategy is to start by paying off the debt with the highest interest rate while maintaining the minimum monthly payment for all other debts.
If you see errors on your credit reports, dispute them with the credit agency. Compose a letter of dispute to every agency that reported errors, and include as much documentation as you can. Mail the materials and ask the postal service for proof of delivery in order to build a record to show that the agency did indeed get the letter. If you want to fix your credit, devise a plan of action that will help you eliminate debt. Carrying too much debt will reduce your credit score while burdening you financially. Create a budget that you can live with, and use as much available money as possible to pay down your debt. Having no current debt will help to raise your credit score.
Take the time to communicate with creditors that you are struggling to make payments to. Creditors are often willing to work with you on a payment plan that does not negatively impact your credit report when you take the time to call them. This may also alleviate some financial stress and allow you to work on paying off any debt accounts where you are not allowed to make a repayment plan. Carefully read all of your credit statements. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn’t buy. It’s up to you to make sure that every item on your bill is correct and dispute those that are not.
Keeping an active savings or checking account at a local bank is a great way to begin repairing any credit damage. Having an active account verifies that you have an income stream and ability to manage finances. Creditors want to see that you are responsible, and good bank accounts with no overdrafts and returned checks show this. If you are able to get a payment plan worked out with any of your creditors, make sure you get the terms in writing. You want documentation to back yourself up so there will be no problems in the future, and if the company owner changes you will have more of a chance of keeping your plan. Once the debt is fully paid, you need to get a statement verifying this from the creditor and send it to each of the major credit bureaus.