Credit Fix : Three Tips to follow
Everyone at some time can be found in a situation of bad credit. Maybe you do not even know it. A late or missed credit card or home mortgage payment is already enough to lower your credit rating. Having a low rating can be particularly detrimental to your capability to borrow from financial institutions, especially if you plan to make a large investment like buying a house.
Don’t be desperate, bad credit can be fixed. You have to work on the causes of your low rating. First cause can be charge-offs. It appears on your credit report if a creditor has given up trying to collect from you and ends up writing off the amount you owe as a bad debt. How to fix it? Immediately approach the creditors and make arrangements to pay off the old debt. After a few months of regular payments, or if you repay a charge-off debt in full, submit a written request to that creditor to change the status on your credit reports.
Second possible cause is consistently late payment (over 30 days late). To fix it first set up a pattern of paying on time over several months. Contact your creditors (and follow-up in writing) to let them know that you're back on track.
Third, creditors’ reports mistakes can lower your rate. To repair it, once again contact first your creditor by phone and follow up with a written request that the mistake be corrected. You can also contact the Fair Credit Reporting Act (FCRA) to report the discrepancy.
Repairing bad credit can take many months to a year or more. But don’t despair. In most cases you can fix it by yourself by contact your creditors.
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