Most have some form of debt. As long as you can easily afford your payments, debt is not a bad thing. But if you fail to make these payments repeatedly, you will find yourself among the ranks of debtors who have poor credit ratings. Financial institutions like banks and credit card companies will consider you a risk if you have a bad credit score. This means that you may or may not qualify for credit. If you did qualify, you would pay higher interest rates and be subject to stricter repayment period guidelines.
How Nonprofit debt counseling can improve your Credit Score
There is help available for those who find themselves buried under a mountain of credit card debt. But first, you accept that you need some help fixing your debt problems and learn from your mistakes. You can improve your credit standing by following four simple steps to credit repair debt consolidation. Your primary goal should be to improve your credit score as quickly as possible. A rapid increase in your score would mean a year - an achievable goal if you respect the credit repair debt consolidation plan outlined below.
1st Get a credit report
There are three Credit Reporting Agencies ñ Equifax, Experience and Trans Union. You can get a free credit report from each one annually. To monitor your credit rating details, request a report on your credit record once every quarter.
Go through your credit report very carefully when you have it. Sign in to challenge anything that seems wrong. If the creditor you challenging doesn’t respond within 30 days, will record these will be removed from your report that will increase your credit score. This is necessary for a successful bad credit debt consolidation
Step 2: Prioritize and Pay off Your Debt quickly
the aim of credit repair debt consolidation is to clear out your debts. List out your debts in the order in which it is causing you the most financial headaches. For example, most loans charge you 18% interest per annum, while your credit cards typically charge you 3% compounded interest per month. If you are missing credit card payments you’ll want to make them your priority because they affect your credit score. Pay off the minimum monthly charges for all loans but will pay extra for the highest interest loans to finish them off first.
Step 3: Pay Your Bills Early
The monthly payments on time is very important your credit score. You’ll have to make payments on time for a full year to correct any damage you’ve done to your credit report from missing payments in the past.
Fourth Use a Secured Credit Card
You can also increase your credit score and help your credit repair debt consolidation efforts to get a secured card.
Following these four easy steps will help you solve your bad debt. You’ll have your freedom back from credit card if you really work for it.
If you are struggling with debt or have been victim of some turbulent economic times and wants to raise your credit score, so you can start enjoying the finer things in life again, you should check out the Credit Secrets Bible PDF and get you back in lifestyle you deserve.
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