Debt Settlement – Tips To Manage Your Credit With Debt Settlement
If you plan on using debt settlement methods to repair your credit
, your credit score will be adversely affected. When you finally decide to settle your debts you will probably already have several reported late payments that appear on the credit reports generated by the three major credit bureaus. What's more, if you have reached a point where you are involved in a program for debt settlement it is already an indication that you ceased paying creditors for some time period. The late payments and the lack of payment to creditors definitely catches up with you and lowers your credit score significantly. Nevertheless, you can still repair credit issues through debt settlement so that you can eventually be qualified for credits and loans in the future.
There are a few effective techniques to use when trying to fix your credit through a debt settlement program. Following these techniques, you will soon be working your way toward having improved credit:
1: Talk to creditors about a "Pay for Delete" Agreement.
This is when the creditor removes any and all details about your account from your existing credit report once you have paid off the account and settled the debt. You will want to ask the creditor to indicate on your account that you have fully paid off the debt that was at one time late or delinquent.
2: Do not close all of your accounts.
If you are closing accounts, minimize the number you close to no more than two credit accounts in a six-month period. If you close a lot of accounts at one time it has a negative effect on your score. Always keep a couple of accounts open so that you can establish a solid credit history too.
3: Get a credit card for a specific store or for fuel.
To begin rebuilding credit you can apply for a credit card for fuel or for a local store; these cards are easier to get than traditional cards, especially after you have been involved in a debt settlement program. Use the cards and keep them current.
4: Start saving.
Savings can be turned to in times of financial need. You will illustrate responsible behavior and you will ready yourself for the time when you need money to pay your bills in a timely manner. You can also later qualify for a personal debt consolidation loan if you have a savings account to use as collateral or you can use some of the funds to make use of secured credit card offers.
Debt Settlement Tips To Manage Your Credit With Debt Settlement