- September 28, 2021
- Posted by: Sushil Kumar
- Category: Credit Management
Maybe you have been in that dreadful situation where your credit record is being negatively affected by the debts you owe and you seem to be unable to get out of that place. You would not be the first nor the last person whose credit problems got out of hand. Having a bad score on your credit record is something that greatly affects your economical and financial stability and the things you can do. It will prevent you from gaining access to more credit and loans in the future and gives you a bad name with banks and other financial institutions.
There are many ways in which you can improve your record, it is not something completely impossible put it is also not something easy and it cannot be done overnight. Fixing your credit score is in many ways similar to losing weight: it is a slow process that requires hard work, and there are no shortcuts that are a hundred percent effective. The best recommendation that Premier Consumer can start giving you is to manage your credits and debts in a responsible way, but if it has not been your case, then try to do some damage control.
Just like with weight loss where you can hire a personal trainer or become a member of a gym, there are many companies and agencies that specialize in helping people control an repair their credit score; but there are also plenty of things that you can do on your own that can be helpful. Here are seven tips to fix and keep a good credit score:
“There are many ways in which you can improve your record, it is not something completely impossible put it is also not something easy and it cannot be done overnight. Fixing your credit score is in many ways similar to losing weight, it is a slow process that requires some hard work and there are no shortcuts that are a hundred percent effective”
1. Check your credit report. The first step to fix something should always be to evaluate and check for any problems or things that are not the way they should. Your credit score is no different. Ask for a copy of your credit report and read it carefully. It is not beyond reason to think that there may be one or more mistakes in it. What you need to do should you find any errors is to contact the Bureau of Credits right away! Keep an eye out for late payments or anything that you paid and does not show up on the report. A tiny error can cause big problems for you. In order to do this you should keep your own records of what you pay and when you do it.
Read also Are there errors on my Credit Report? For more information on the matter.
2. Set up a reminder. If you are the kind of person that has a hard time remembering small tasks that you have to do or you just are so busy that you forget these things, then use modern technology to your advantage. Most banks provide their customers with a reminder service that work by sending you texts or e-mails to remind them of any pending payments they may have. You can also use a smart phone if you have one to do this. There are plenty of apps that you could download that do exactly that. They are an excellent tool to help you make timely payments and these always look great on your record.
3. Lower your debts. It sure is not as easy as it sounds, this may be the hardest tip to follow but it is not impossible. Settling a debt is always a good thing, you get that weight off your back and at the same time you are improving your score. We highly recommend that you start with the biggest and most pressing debts. The best way to do this is by creating a payment plan that fits to your specific situation and budget and to start with the most urgent ones in order to create more financial liberty for yourself.
4. Pay your bills on time. Quite similar to item number two, paying your bills on time is not just good sense, it helps you improve and keep up a good credit score. Such are the things that banks look at when you are asking for a loan. Late payments, even if just for a few days, always look bad on your record and can attract collection agencies which are like horrible scars on your report.
5. Get up to date with your payments and stay that way. If you have any payments that are running late get rid of them as quickly as possible. The more you have the more you are hurting your score. Try to use the payment plan that we mention before and prioritize these payments, otherwise they will remain for a longer period of time in your report. However, if you start to pay them off they should fade away in time and be replaced with the payments that you have made. It is imperative to do this and stay always up to date with your payments.
Read also How to Take Control of Your Credit Rating! for more information on the subject.
6. Pay off collection agencies. If you have reached that point in which you have fallen victim of collection agencies, the best thing you can do is simply pay them off as soon as you can and get out of that nasty situation. Being contacted by a collection agency is the worst thing that can happen to your credit score as it is the lowest point a debt can reach. But keep in mind that simply paying off a collector is not the end of the story, they will leave a mark on your report that will remain there for the next seven years of your life. But is not the end of the world, with timely payments and good things showing up on the more recent pages of your record that nasty scar can be overlooked and will eventually fade away.
7. Ask for Help. If you are having a bad time dealing with your credits and debts and feel like you are drowning in debt, contact us here at Premier Consumer. Our advisors will help you unify your credit card payments and other debts into a single monthly pay through our Debt Management Program, so you can finally be free of so many debts and worries. If you find yourself unable to meet your payments, go talk to your bank and explain your situation, most banks are willing to re-negotiate terms and reach mutually beneficial agreements to help you through your situation without compromising your credit.
Keep your head cool and carefully analyze your credit report, not all is lost and there is no problem that cannot be solved. Your credit score will not improve or change overnight, but it is not something permanent either. Just follow our tips to make it better.