subject: Getting Second Chances for Improving Credit Score [print this page] Getting Second Chances for Improving Credit Score
Many people give up, because of this, when they think they have ruined credit. They do not see any reason to apply because of their own "ruined" credit. However, finding information about your eligibility can help you reach your goals without worrying about your credit.
Individual creditors will make their own requirements for judging whether you will be approved, and they will view your credit report differently. Some creditors will be more interested in your recent credit history, giving more weight to paying bills on time in the past few years. It is often a good idea to contact the creditor to go over policies with them, as a first step. You will find that the worst case scenario is that you will not be approved, but it won't cost you anything to try.
There are many creditors who will consider letting you repay over time. This is a good option if you are not able to stick to a self imposed schedule but can meet a deadline. It's a waste of everyone's time if you do all kinds of work finding good options, only to fall behind on payments once again. Some of the organizations and non profits that have been set up to help people learn to manage their money are great. Others are untrustworthy. Make sure to check out any you are considering using. Also you should find out about their prices first. Determine whether their prices are higher than normal or if they have secret charges. Even if a business operates as a non-profit, you're not obligated to support them. If you had money to spare, you would not be asking them for help. If a management company is going to help you, make sure they interact with you in person and not exclusively online.
Often times people think the only way to escape bad credit problems is by filing bankruptcy. Applying for bankruptcy is hardly a simple solution. It takes at least seven years to recover from a bankruptcy and be able to think about purchasing a home or a car. Bankruptcy law was changed in October of 2006 to include a requirement for credit counseling within 6 months of filing. Consider the fact that it is preferable to have credit counseling and learn to manage your money rather than filing for bankruptcy and not changing your financial methods.
Even though you feel that your future credit looks bad, you have to consider the fact that there is something that you can do to repair your credit and get it back on the right road. Just do not ever throw in the towel. Don't stick your head in the sand or look for an easy escape. Instead, try to fix your credit, with counseling or another method. If you do this, then somewhere down the road somebody will want to give you another chance.
