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How to Solve Your Problem With Credit |
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How do you know you have a
problem with credit? Have you been turned down for a credit card or car loan? For FDIC auto insurance tips with one of the best companies? Even for a job? If so that may indeed be a sign of a problem with credit. But there are others. Are you paying your bills late? Paying minimums on your credit card payments? These too are signs of credit problems. Perhaps its time to check your budget and see where your money is going. It may also be time to check your credit report and see how your financial profile looks. Checking with one of the major credit bureaus, such as Equifax, Experian, or TransUnion to see what your credit report looks like is a good idea and can be free too. The Fair Credit Reporting Act (www.annualcreditreport.com) provides that each of the credit reporting agencies should give you a free credit report every 12 months if properly requested in writing. This can be a headstart on solving your problem with credit and getting your financial house in order for the long term. The FTC is the arm of the government that protects the consumer in financial transactions, especially those involving credit. You can go to www.FTC.gov/credit for information in this area. Or you can write directly to the consumer rights center in Washington, D.C. for help or information. This is the place to go for credible information on how to resolve problems with credit or disputes over credit. A problem with credit is something that is brought about by irresponsible or unknowing action or lack of action on the part of the consumer. Often misleading advertising on the part of the creditors precipitates this, but it is the responsibility of the consumer to watch out for this. Basically, problems with credit come from difficulty in maintaining payments on time and correct amounts to legitimate creditors. This can lead to further problems in obtaining credit, as well as problems in getting insurance or even jobs down the line, as nowadays, even businesses use credit reports to determine the financial stability of potential job applicants. Many things can lead to such problems, not just ill-advised late payments due to a lack of attention. Sometimes medical problems in the family constrict the budget. Sometimes an unexpected layoff can precipitate these problems with credit. Actually, proof of such extenuating circumstances can be of help in explaining the reasons for credit problems. You should use such proof and provide it to your credit reporting agencies in order to explain downturns in your credit profile. Another helpful idea is that you should provide these reasons to your creditors when you have difficulties in making payments, so that they have reasons why your account is late. Then they will see that when you have things back under control your actions are responsible, as before. Just as a history of negative credit issues heralds a problem with credit and can hinder your buying power, or even your ability to find desirable places to live, positive credit information can help bolster your ability to do the same. Try as much as possible to build a positive credit profile and continue to make a record of more and more positive items in it, so that you will bury any negative items in your credit report as well as strengthen your financial reach in the best of times. One important item in building a positive credit profile and avoid any problems with credit is to keep most of your receipts and bills until they are no longer needed. In this way you can dispute any incorrect information that may appear on your credit report with facts. It's also a good way to track later where your money is going. Many people avail themselves of the services of a credit counseling service. This can be helpful, especially if you are very short on time or the patience needed to track down the necessary information and paperwork to fight problems with credit. But it can often be unnecessary, since the Fair Credit Reporting Act provides that nothing a counseling service can do for you is out of reach of the normal consumer. In effect, you can do anything they can do. What they usually do is help you track your monthly spending, and get it under control. They also will work with your creditors to set up payment plans that are workable for both you and them. And they check your credit reports to see what damage has been done to your credit profile, and determine how best to correct it. As stated before, these are all things you can do for yourself, if you wish. A diligent consumer who knows his or her rights can effectively fight any problem with credit. The only other thing you will need is the tenacity to stay the course and build your positive financial future! |
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