Improving Your Credit Rating

Preserving our credit rating is very important since serves as a gauge for different companies if we pay our bills on time or not. From luxury to basic needs, we are always asked about our credit score before they grant us their services.

A low credit score will never give us the basic service we need. Most of the phone companies don’t want to install phone lines to people with low credit score. Even cable and satellite TV providers don’t want to deal their business to those that have very low credit score.

Getting a low credit score is very easy: don’t pay your credit card and any outstanding bills and see your credit rating go down really fast. You won’t even have to think of calling them for any adjustments. Just let it be and enjoy their services without any payment.

On the other hand, repairing your credit score is probably one of the most difficult tasks. It could take months before a small percentage to go down. Sometimes it could even take years before the credit score could go back to normal or good.

You could avoid getting your credit score to go down. You just have to pay all your bills in time. But sometimes, we don’t have that luxury for varying reasons. The process of reporting a non-payment takes time. You’re usually given 15-30 days to pay your bill. After that your information goes to the collection agency which will also forward your information to the credit scoring institutions.

Prevent the billing company to report your non-payment as soon as possible. If you can’t pay your bill on-time call them in advance or at least a few days after the due date. Strike a deal with them as soon as possible. This way, they will never have to report you for non-payment since you just made a new agreement with them.

For example, call the phone company on the due date and agree to downgrade your subscription plan while working with their in-house collection agency. The fact that you’ve made an effort to plan your payment is good enough for these companies. Just be sure to honor them with the agreement.

If ever you’re in a bad credit rating, don’t be disheartened. There are ways that you could repair your bad credit rating. It takes discipline and patience and through time, you’ll eventually reach the rating you want. The easiest way of getting your credit score not to go down is to pay ALL your bills on time. That means you might want to cut some of the services just to make sure you could pay for the necessary ones.

Here’s a trick that worked for most people. If you can pull it off, it will definitely get your credit score really low. Look for company that can give you a very high credit limit. There are so many out there who doesn’t care about your credit score. Get their services even though they will give you a relatively high interest rate.

Don’t use-up the credit limit since you know you can’t pay for it. As much as possible, use only 10%-30% of the credit limit allowed. This way you can easily pay for the balance every month. Credit agencies will notice your diligence and will greatly affect your credit rating. If you find yourself in a very low credit score and on the brink of bankruptcy, get ahead of your financial situation and declare bankruptcy.

A very low credit score and bankruptcy will give you access to the same services which is virtually nothing. The difference of having a bad credit score with declaring bankruptcy is that help is really coming.

There are so many institutions out there that are more than willing to help those that are in bankruptcy. If you declare your bankruptcy ahead of time, it’s also a good sign for the credit agency since you are more than willing to seek help.

Although almost improbable, one of the tricks that could help you lower down your credit score is to ask every collection department for the documents regarding your payments. This way you can review every payment that you’ve made and dispute some of the dubitable facts written there. You’ll never know what they have done wrong if you don’t ask them for the proper documents.

Sometimes they would disregard a charge since they can’t prove anything that you haven’t paid them. Improbable but at least you will have the chance of reviewing your payments and take note of the information.

Repairing your credit rating is not very easy and it will take some time. As much as possible prevent yourself from having to rely too much on your credit card or your debt. Before your credit rating go down seek assistance and control your spending to ensure that you are able to pay on time.