By financen | November 16, 2009 - 6:28 pm - Posted in Bad Credit, Credit

People with bad credit often face difficulties in every phase of life when they are looking for any new credit from potential lenders. There are ways to improve the credit ratings and you need to take positive actions and change your attitude towards money. Here are some good tips on the road to debt recovery.

The first thing that you need to do is to order a latest credit report from the credit bureau. Look for any inaccurate items on your credit copy and get it fixed immediately with the credit grantor or the credit bureau. You need to take immediate actions because inaccurate items reported on your file are one of the reasons of your lower credit scores and your potential to get new credit.

If your credit scores are getting hurt because of the accurate negative items, then you must contact the creditor and work out payment arrangements with them. It will be a good move to pay off those debts that are catching the highest interest rates.

If you are overwhelmed because of your existing debts, contact a non profit credit counseling organization to work out a debt consolidation plan. A debt counselor will contact your creditors and negotiate with them to reduce the existing interest rates. This can reduce your monthly payments by up to 40%.

Stay away from any credit repair services or company offering you debt consolidation loans. These companies will put you deeper into debts. There are many companies that will advertise credit repair packages on the internet, TV or radio or send unsolicited mails or emails.

You don’t need to keep those credit cards active that have not been used for a long time. It will be a good idea to sell some valuables or liquidate assets and use the money to repay the existing debts. You must follow a very tough budgeting so that you can save more money and use it towards paying your existing debts.

Consult your debt counselor and get all the existing debts paid off. Pay the rent and utility bills in time and be regular in your mortgage and car payments. This will definitely build up your credit scores and your car and home will remain safe.

Once you have paid off your existing debts, apply for a secured or an unsecured credit card and make timely payments. You may also apply for a department store or a gasoline credit card. This will definitely improve your credit ratings.

Use your credit card responsibly and pay the bills in time.

This entry was posted on Monday, November 16th, 2009 at 6:28 pm and is filed under Bad Credit, Credit. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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