Getting stuck with bad credit is definitely an overwhelming experience as well as for a lot of people, thinking about the need to declare bankruptcy could be humiliating and difficult to consider. Nevertheless, there are some ways you can apply to obtain yourself out with the situation.
In many cases, bankruptcy could be avoided especially if you may take good action without delay.
You Can Fix Your Personal Credit
Although getting help from a credit repair agency might be necessary, your cooperation and hard work are the keys to successfully be free from bad credit. Therefore, you should be aware about the steps that you can do to improve your credit score and prevent the problem from getting worse.
Check your report.
The first important step is to order copies of your credit report from the three major credit bureaus – Equifax, TransUnion, Experian. Why is this necessary? It will give you the opportunity to examine your report and make sure that there are no errors or outdated information in your file which could be pulling down your score even more. If you have not yet received your free report for this year, you can request for it from www.annualcreditreport.com – the only authorized resource to distribute free consumer credit reports.
Exercise your right.
The Fair Credit Reporting Act (FCRA) clearly states that all consumers have the right to dispute unauthorized charges or inaccurate information from their credit report. Therefore, if you discover any error in your file, you should send a letter to the bureau that issued your report. Upon receiving your letter, the bureau will investigate on the matter and if your complaint is found valid, the incorrect items will be deleted from your file. You will also be sent an updated copy of your credit report for free. Disputing errors from your file can significantly improve your credit score right away.
Restructure your spending plan.
The best way to pay off your debts is to minimize your expenses. Every cent you save can make a big difference when you put it together. Keep in mind that the sooner you pay your creditors, the sooner you can boost your credit score. You might need to make adjustments with your budget plan to save more money.
Seek help from a trusted credit counselling agency.
When the problem becomes too overwhelming, it is best to seek help from a legitimate credit counselling agency. A counsellor will be able to help you create an effective debt repayment strategy and give you specific tips on how you can better manage your finances. You can look for an accredited agency from the National Foundation for Credit Counselling’s website www.nfcc.org/.
Remember that not all credit repair services in the market can be trusted. One way to be sure is to be check the company’s rating from the Better Business Bureau or BBB. You will be able to read about the performance of the agency and find out if there were complaints or law suits filed against it.
