I deal with clients daily, that ask me how to get their credit back on track. As we know, every persons credit bureau is unique and a “fingerprint of their credit management”. In this day and age credit, and how we use it, seems to be the answer to everything. A person cant even rent a car without a credit card, or book a hotel without a credit card. This being said, you would think that the public would be more credit worthy then what the current trends are showing. Getting Credit back on track takes time and diligence on the consumers end. Time alone will not heal credit wounds. Collections will not go away on their own, late payments need to be counter acted with good behaviour, written off credit cards need to counter acted with a secured credit card, bad credit car loan Repossessions need to be counter acted with positive car loan history, bankruptcy’s need to be counter acted with post bankruptcy, good payment history. I deal with this topic everyday with clients, and my clients all have a common question: How do i re-build my credit ? This questions cannot be answered in 1 sentence. Their is not 1 answer for this. I am very blunt when it comes to these suggestions. It is about moving forward, and moving forward in the best possible direction to get the best possible result. Ladies and Gentleman, pay your bills on time, take care of the collections. Call creditors and make them aware of your movement. The worst thing a person can do is not call their creditors. Of course if you don’t call someone they will put a bill in collection. Don’t be afraid to call the creditors and tell them an honest situation. Creditors don’t want to shut a card down, car loan lenders don’t want to repo a bad credit auto loan car . Lenders want their clients to have good credit, so they can have the option to increase limits and get more interest from the consumer. Our interest rates are high because of consumer slip ups. Here’s a list of what a person with bad credit might need to do to correct their bureau
-Pay the collections off (negotiate a payment with the collection company and get a PAID IN FULL letter)
-get through your bankruptcy as soon as possible without missing a payment (get a secured credit card while in bankruptcy, if permitted)
-if a late payment shows up on your bureau and it was only 1, 30-day late payment phone the credit company and ask for a good will adjustment on that late payment.
-the goal is to counter act a negative with a positive and don’t make the same mistake twice.
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Just My 2 Cents