Good credit is a necessity today. Credit is essential if you
want to own a car, home or to shop on the internet. Miss some minimum payments on your credit
card or let your loan go into default -- and you’ll find yourself in trouble.
Creditors will report missed payments to credit reporting agencies and this
will blemish your credit history which can be difficult to repair. In most
cases, it will take seven years for negative credit reports to be removed.
If you have fallen behind in payments be proactive. One of
the best things to do is to contact your creditor. Most people do the exact opposite. Because of
feelings of embarrassment, they avoid contacting their creditor. This behaviour
will result in long-term credit problems. As soon as you run into difficulty
with debt make it a point to contact your creditor immediately.
The key to credit repair lies with your credit history
report which depends on whether or not your creditor reports your non-payment
to credit reporting agencies. In most cases, creditors are open to discussing
some alternate payment plan. The creditor wants to work with you because to
push you away means they will not receive a payment at all.
After contacting the creditor, suggest a realistic payment
plan for both you and your creditor. It is very important that you propose a
plan you can stick to. The worst thing you can do is the default on these new
payment arrangements. It might appear to your creditor that you were simply
stalling for time to avoid making the payment.
Basically, when you contact your creditor, remember that
their decision to report your non-payment to credit agencies will affect you
immensely. It is definitely in your best interest to do everything you can to
convince them not to do this. When you
contact your creditors early and propose a realistic payment plan, you have
taken an important step towards credit repair.
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