2 Tips on How to Repair Credit PDF Print E-mail
Written by Sean Patrick   
Tuesday, 20 October 2009 18:11
Whether youve made some late payments"or missed a couple entirely"youre not alone. Almost everyone has made the occasional financial mistake. But if you have some serious black marks on your credit record, read on for some tips on how to repair bad credit.
by SeanPatrick


Whether youve made some late payments"or missed a couple entirely"youre not alone. Almost everyone has made the occasional financial mistake. But if you have some serious black marks on your credit record, read on for some tips on how to repair bad credit.

Start by obtaining a copy of your credit report from the major credit reporting agencies. (You can find more information online at http://www.ftc.gov/freereports.) Then, scan your report for the two following opportunities on how to repair credit.

Collection accounts: If any of your debt has been referred to a collection agency, you must take immediate action. As you make payments, collection agencies update your account status each month, which can actually lower your credit rating by making the average length of your credit history shorter.

How to repair bad credit: Make a call to the given collection agency and tell them clearly that you are fine with paying off the entirety of your debt under the condition that they delete your account from the credit bureaus' records. While it is not certain that your collection agency will agree to this, it is clearly worth a try. If they do end up agreeing to your request, make sure to have it documented in writing.

Past due accounts: Listed in the section of your credit report marked delinquent, there is a subsection titled "past due". Past due balances can also destroy your credit rating. So again, taking immediate action is crucial for your credit rating.

How to repair credit: If there are options available, discover a way to make past due payments in full. If you have trouble doing this, call the creditor and see if they are willing to set up a schedule on which you can make payments in order to remove it from your credit report. Again, it is important to get this documented in writing for your defense.

Your credit does not have to be dragged through the mud by collection agencies and past-due accounts. You do have options - if you are willing to negotiate and make your payments, you can save your credit and get back on track.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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