Credit Coaching Guide – Part 1
Don’t despair if you find yourself with a less than desirable credit score and credit history. You are human and can make mistakes. It’s natural. The key to this is recognize that your spending habits are out of control, your credit has been damaged, and then vow to never get yourself back in the same situation after you have gotten your credit repaired.
First, get your credit report. We suggest the following site to pull all three credit bureaus and all three sites.
Some companies only report to one agency. Some report to all three. But if you are committed to repairing your credit, you need all three so that you don’t miss anything.
Go over those credit reports carefully. Read the following blog series on how to read your credit report.
Check to see that there are no errors such as a bill you’ve paid but that is still being shown as owed.
People at credit bureaus are human too and make mistakes just like you! If you don’t call attention to these mistakes, no one else will. We’ll cover correcting those mistakes a little bit later.
The next part involves pulling out those accounts that are delinquent and possibly making a re-payment plan. Unless you are declaring bankruptcy, you will likely need to pay these debts and doing so could go a long way towards improving your credit history. Creditors will see that you are doing the best you can to get back on your feet and this improves your credibility.
If all the bills are too overwhelming for you to consider paying back at once, concentrate on one at a time. Break them into pieces, contact the company and let them know you are trying to come up with a repayment plan and if there’s anything they can do to help you out.
These companies really just want their money in the long run, so they are going to be willing to help you. Once that company is paid off, move on to the next one until everyone is paid off.
After that happens, it’s not like your credit is immediately pristine. Late payments and charged-off accounts remain on your report for seven years; bankruptcies for 10.
Most creditors, however, look for a pattern of payment rather than focusing on one-time or rare occurrences. That’s why consistent on-time bill payments will improve those blemishes.
As soon as you have paid off your creditors, then you can start all over again. Rebuilding credit will be an important part of that. Stay tuned for some more information about building your credit from scratch in future blog posts. Nothing can compare to consistent, on-time bill payments and responsible credit practices when it comes to repairing your credit.
Stay tuned for part 2 of the Credit Coaching Guide.
Schedule your free consultation with us today so we can go over these techniques and other credit coaching techniques to help improve your credit.
Elevatemyscores.com has the following offices:
10101 Southwest Fwy
Houston, TX 77074
501 Congress Ave
Austin, TX 78701