Bankruptcy vs debt consolidation, which one is right for your current debt problems?

There are laws on the books in many countries, including the U.S., which let those who have found errors on their credit report to contest their inclusion in these reports. Doing so can really help out your credit score, being that your score is largely affected by what is found on your credit report. This process can be easier than you may think, as long as you are able to prove your position.

Given the importance of good credit, diligence dictates that you follow a methodical way of reporting the inaccuracy and providing supporting documentation so that the repair process goes quickly and efficiently. You just can’t call the credit bureau in disgust and start hollering at the clerk about the mistake. While a wrong credit report does make one angry and frustrated, that’s no reason to let off steam. Follow the steps below and adhere to the rules.

Do not apply for additional credit while your credit score is still at the “iffy” stage - each time you apply for credit, this gets registered in your record and gives the impression that you are a person who over-extends or uses too much credit

Bills should be paid promptly; skipped payments will lead to you being backed up on bills and at risk of not being able to pay, further damaging your credit. Even though there may be no immediate consequences for skipping a payment, it may come back to haunt you later.

Pay more than the minimum monthly payments on your credit card or cards. By not overextending your credit limit and making these payments, you’ll be doing yourself a big favor.

Debt consolidation may be a good idea. If you are paying on many debts, the varying interest rates on these debts may be costing you more than you think. Seek some advice from a financial planner on this, it is definitely convenient and may save you money.

Use cash, if that is an option. Try only carrying cash - you can’t spend money you don’t have this way.

Try to build a relationship with your bank and other financial people involved. With a bond of understanding and trust built, your financial service providers may be more willing to give you a break on minor credit issues.

Credit is very important, but also can be ruined before you even see it coming. If your credit is in need of repair, you need to get to work doing so immediately. Make all of your payments on time and save proof of this. You can send this documentation to credit bureaus when needed.

Keep this in mind - if you find a problem on your credit report, make sure it gets fixed!

About the Author:

Steven J. Talrechi has been monitoring credit reports and credit reporting practices for the last decade. He is a thought leader in second chance banking and helping individuals get a new bank account when traditional institutions abandon them.

Steven J. Talrechi | Credit Repair |

Tags: Credit Repair, credit score

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