Many people are aware that having bad credit is a big disadvantage. And many even know the basic steps to start improving their credit, But surprisingly, there are quite a few people who choose NOT to do anything about their bad credit.
Below are the most popular reasons why people do nothing about their credit score.
You would think that once you inform someone that their credit score is a 580. They would want to do something about it. But we have had some clients tell us, 580 isn’t that bad. Its better than their friend or family. Some even feel that based on their economic situation. The credit bureaus discriminate against them and no matter what they do, they will still have a low credit score.
Waiting for the problem to go away.
There are those that feel they will just wait for 7 – 10 years for their negative credit to fall off their credit reports. What they don’t realize is that if they don’t start to rebuild credit, they will have trouble qualifying for credit. Or if they want to buy a home, a mortgage lender may require they pay all their negative credit despite the age of the negative item.
Not knowing where to begin.
Some people simply do not know where to start. Even with all the free resources available online (including our articles on do it yourself credit repair). They feel overwhelmed by what they need to do to get their credit where they want it to be. So they do nothing.
Thinking that it’s too difficult.
A few years ago, credit repair was not widely known or understood. But I feel there is so much education on the market that anyone who WANTS to repair their own credit can. It will require that they invest a lot of time and energy into it. But the end result is well worth. The biggest thing you have to watch out for are scams. Like “magic letters” that legally make it impossible for the credit bureaus to report accurate information or scams like the CPN (credit profile numbers). A legitimate tool that scammers have perverted into a scam that can get you involved in identity theft!
Do you think that your situation is hopeless? No matter how bad the damage has been to your personal credit, it is never impossible or too late to improve it. In fact, the sooner you take action, the sooner you can regain your good credit standing once again. Some situations will require a professional credit repair company, or a credit attorney.
Relying on someone else’s good credit.
Some people don’t bother to fix their own credit thinking that they can always count on their spouse or parent’s good credit. Nevertheless, you can enjoy better opportunities if you will strive to work on improving your own credit.
Debt repayment is impossible.
Do you think you have such an insurmountable debt that you cannot possibly pay your creditors? Even if you can’t pay all your creditors at once, there is a way to eliminate your debts one step at a time. All it takes is a repayment strategy. Negotiating with your creditors is also an essential step to recover from bad debt. Do not feel like you have to pay all your debts in one lump sum payment. It does not necessarily have to be the only solution to bad credit.
Choosing bankruptcy over other solutions.
Do you plan to file for bankruptcy? Some people have the wrong notion that declaring bankruptcy is the easiest way to be free from debts. The process of bankruptcy has become more complicated than it was in the past years. In some cases, you may not even qualify for a complete discharge. You will still be subjected to debt repayment.
Even worse, a record of bankruptcy will remain in your credit report for up to seven years and can have a significantly negative effect on financial opportunities that will come your way. If you can get yourself out of bad credit without filing for bankruptcy, bad credit repair will be much easier for you.