10 Alternative Tips to Repair your Credit
2. If you don’t need a new car, home, jewelry, furniture or anything else that can open a new line of credit, open a secured credit card! It is a new line of credit and will prevent any overage fees.
3. Have high credit card interest rates that you can’t seem to find the money to pay off these cards? Take a loan from your home equity or retirement account. Credit card rates can get to be as high as 28% interest, it’s HIGHLY unlikely your home is increasing in value this rapidly nor is it likely your retirement account is giving you a net return of 28% a month.
4. If your’ credit history is very young (when accounts are closed that account is no longer averaged into the age of your credit history) ask a spouse or parents to be placed as an authorized user on one of their older accounts, the age of this account will now be factored into the age of your credit history.
5. Multiple late payments can be removed by the good graces of a credit company if you have a good standing with them, but if they refuse to remove late payments open new accounts and make every payment on time. This will lessen the impact of those pesky late payments from your past.
6. You just discovered one of your accounts has recently been sent to a collections agency, ask the original creditor if they will take back the account in exchange for payment in full and remove negative marks from your account.
7. If an account has been in collections for a long-time mention to the collections company bankruptcy might be your only option. An unsecured debt is often left high and dry if a person must resort to bankruptcy.
8. When negotiating a settlement amount tell the collectors where the money will be coming from in the future (i.e. tax return, annuity payment, life insurance, etc.) let them know you will be clearing up multiple accounts and will pay off the company that gives you the best deal. You hold the power and the creditors or collection agencies will be in a battle against a ghost number, never knowing when you will have the money to pay them again.
9. Pay down accounts with the highest interest rates first. Chances are your mortgage interest rate will be lower than your credit card interest rates. Tackle the biggest interest rates first.
10. Be proactive and stay in contact with your creditors and collection agencies, most creditors send your account off to collections company after 180 of nonpayment, but if they are kept in the loop and you provide them documents they are less likely to sell your account to a collections agency, the would just mean less money for them!
No comments:
Post a Comment