Credit is something that’s hard to actually lose. Sure, you can develop bad credit quickly, or even slowly. But once you have a credit history, it sticks around forever. Some things do fall off your credit report, but you have to be able to know the dates in order to figure out what’s going to happen to everything.
You might be avoiding the subject of credit repair because you really don’t want to see the damage. If you know that there are late items and other negative markers on your credit, it can be downright depressing. However, there does come a point where you need to decide how bad you want to get your credit taken care of. If you are the type of person that wants to have a good life someday, you will need to start thinking about the type of credit that you want to have. Obviously, you want to have as good of credit as you possibly can.
The thing is that bad credit isn’t the end of the world. You do have some options — including bankruptcy. As much as we don’t want to think about bankruptcy, it can be the best way to overcome a tough situation. It gives you the clean slate that you need to move on with your life. Creditors actually can establish new relationships with you even though you’ve declared bankruptcy — once you declare it once, you have to wait at least 7 years before you can declare it again. That means that creditors are more willing to lend to you because they know that you have to pay it — you can’t just declare bankruptcy again. Keep this in mind as you try to build your credit again.
However, is bankruptcy the only option? Not at all — debt consolidation and debt settlement are two other options that you might want to think about. Yet before you can even begin analyzing those in any detail, you will need to make sure that you are still thinking about your credit report.
No, it’s something that no one wants to really think about — not when they know that there are negative entries. However, the only way to really discover which option is going to be best for you is to pull your credit report and really look. Are you going to be including things that honestly aren’t even covered by the statute of limitations anymore? If a creditor has no more right to chase that debt, there’s no reason to accidentally give them that right by starting the clock over again. It’s better to not even answer those collectors. You will want to make sure that you are always looking at the actual aging of your accounts. For example, dif you have accounts that haven’t been touched in 10 years, that’s not where we would suggest focusing your money. It’s better to think about the items that are still clearly in the statute of limitations. Those are the ones that you will want to negotiate for. However, unless the company is going to agree to allow for deletion of the negative trade line, your credit score is still going to take a beating.
Sometimes it can be hard to get the company in question to agree to that, which means that you will have to be ready to stand your ground. If they aren’t willing to include in writing that they’ll allow the trade line to be deleted, then you will need to avoid paying that trade line and move to something else.
Don’t forget that just as you’re looking through your credit history, you need to make sure that you’re also trying to build your credit history as well. There’s no reason to avoid doing this just because you’re in debt. A secured credit card, when properly managed, can help you build your credit again. Other small loans paid back on time can help as well. You want to always be looking to the future when it comes to your credit.
We know that all of this can be hard to take. We know that you might be feeling nervous for the future, especially in light of all of the things that you must do to fix your credit. However, it’s definitely worth it to make sure that you really do focus on taking care of your credit the best way you can — why not start today?