Credit Repair Tips

Written by Abby Luttrell
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If you're struggling with financial problems and a bad credit rating, it's hard to know what to do. It can seem like a hole that you'll never get out of. But even if you're in the worst crisis, there are reliable credit repair tips that can lead you back to normalcy.

Talk To Your Creditors

One of the most important tips is: contact your creditors. Sometimes this is the last thing you feel like doing, especially if they're calling you every day. But instead of avoiding the calls, get them on the phone with your account information in your hand, and be truthful about how much you can afford to pay them and when. They will be happy to set up a payment plan even with reduced payments, and if you stick to it, your credit rating may be saved.

A second credit repair tip is to think long and hard before you decide on bankruptcy. It may seem to solve your problems, but it actually won't save your secured loans, such as your house and car. And for your unsecured loans, like credit cards, it will be on your record for 10 years. Probably you'll be allowed to keep one credit card.

One of the best credit repair tips is to get debt counseling. A credit counseling service can give you debt assistance by referring you to a debt consolidation company. These companies work with non-profit agencies to lower the interest rates on your debts, create an affordable monthly payment based on a realistic assessment of your income, and eventually eliminate your debts altogether.

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