Coping with a bad credit report may be very stressful, however its easier then you realise to fix your credit report. Improving your credit rating demands that an individual take positive action and also that you adjust your attitude when it comes to money. Here is some advice on how to help fix your bad credit report.
Firstly, Request a copy of your own credit report from the credit institution. In the event that there happens to be a mistake, contact the same institution and ask it to correct the miscalculation. It might also help to contact the creditor who documented the error. Some creditors will make contact with the institution on your account. This can help ease the worry of not knowing exactly what to say if you had to speak to them yourself.
If the bad marks on your credit report are because of outstanding debts, then it is crucial that you settle the debts as swiftly as possible. Pay back the debts that have the greatest interest rates initially then do the others after. Once the bigger ones are paid off this will also help you psychologically and you will feel less pressure.
In the event that you're current debts are overwhelming, contact a charitable credit-counselling organization to formulate some sort of repayment plan. A counsellor will help you in consolidating your debts and will certainly contact your debtors on your account to lessen or get rid of any charges you might have. This can work wonders and can sometimes reduce your monthly amount owed by up to 30-40%.
Stay away from any kind of companies that offer you credit-repair or financial loans. These types of companies will only worsen your problems and make the debt even worse! In particular stay away from companies that make offers that seem too good to be true as they almost always are! If you spot any offers that do seem good then do some research firstly on the internet and see how others have got on with them.
Shutdown all your accounts that are on credit and destroy all your credit cards. Sell valuable belongings and assets that will help you pay off your bills. Purchase only the basics such as food and heating bills and utilize the remainder of your income to pay off your combined money owed. You are going to have to make some sacrifices if you want to improve your financial situation.
Work closely alongside your counsellors when paying off the debts. At the same time, live a life that will stop you from getting in worse debt. Pay rent and other bills as soon as they come, keep the same house and occupation, preserve savings, set a budget and stay with it. Don't go out spending money on things you can't afford you will only end up back in the same place. If it means your social life takes a hit then so be it.
As soon as you have paid back all your financial obligations, you can apply for a new credit card. Just as long as you don't get in debt again this will help you to build a good credit history again and fix your credit report. This could even be a department store credit card!
Another good idea is to apply for a secured credit card. With a secured credit card, you finance an account in advance and after that "charge" expenditures upon it. This card will show up as a new credit card on your own credit statement and providing you stay debt free, can help you develop a very good credit record.
So there you have some excellent advice on fixing your credit report, if your serious about getting a good credit report then you need to stay disciplined and focus through what is going to be a very tough time.