Basic Steps To Repair Your Credit

Keep in mind that collection agencies will need a judgments from the courts on your credit report. The declared judgment will remain on your credit report seven years. Once you have proof of a judgment, you will need to contact the credit reporting agencies with a copy of the court orders. They will send you a copy of your credit report for your records. In some cases, you may be able to send the agency a letter on the subject matter in question. Sometimes you will need to talk to the collector directly. The court ordered judgment will affect your ability to obtain credit in the future. In many cases, try to get the judgment removed from your report. In the future, repair your credit slowly.

Know the difference between good debt and bad debt. In many cases you will be able to have the bad varieties removed from your report, but a good rule of thumb is that you can authentic bad debt from good accounts. This is not an easy fix but well worth the effort. You'll want to question any collection agency that attempts to collect on a debt that has not been adjudicated through the courts. You may have to dispute the debt multiple times. The negative items may remain reported for seven years or until the item comes off your report, whichever comes first. This is the one rule most people disagree with. I can't stress enough you won't have this problem with your creditors. There are other laws to contend with.

Sometimes the first damage to your credit report is the first step to doing something about it. This can be frustrating and can sometimes make you feel down.  Here are some basic steps that may help to repair your credit:

• If you have made a mortgage or other large loan, strive to make the payments on time. This may have a snowball effect on your score.
• Pay your bills right away. This may sound like a no-brainer, but missing bill payments is a big deal and will damage your credit score.
• If you can't pay, contact the creditor and let them know you will pay the balance owed at a certain date.
• If you must have a credit card, keep the balance low and pay on time. This will also positively impact your credit score.
  

Debt is not a fun thing to deal with. For every financial delinquency there is a creditor ready to slap you down the line. Take these tips with you when dealing with creditors and you may find yourself in a much better position to fixated your credit following an unpleasant experience.