Best Ways To Repair Your Credit

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Follow these steps to get on the path to rebuilding your credit.

Bring all new past due balances existing. Pay any new past due balances which have not been paid. They can negatively impact your credit and you can stop them before they have referred for collection. This will aid in stopping any new judgments or wage garnishments. At times just producing a payment on a debt can keep it from becoming referred to a collection agency. The 1st step to rebuilding your credit would be to head off these issues that will drop your credit score even lower. Get each and every past due account beneath the maximum limit.

Examine your credit report.
Most unsecured debts that are at least 7 years old should be dropped from your credit report under the Fair Credit Reporting Act. Each state has a Statute Of Limitations(SOL) that states the maximum amount of time that a lender can seek to recover funds. Creditors can no longer sue you for collection of a debt once the SOL has expired. Collection agencies will continually try to collect old debts that you don’t have to pay.

Remember that companies will not request that negative information be dropped from your credit report so you have to. Alert your credit reporting agency that this old derogatory debt should be removed. Have any inaccurate information removed as well.

Negotiate with the creditors you owe.
This can be by phone, mail or email. I have always found letters the best way to communicate with lenders because there is a documented record on file. It also saves you from threats and harassing communication from creditors. Send your creditors a debt settlement letter letting them know what you are able to pay. Many creditors will take pennies on the dollar to settle an old debt. Companies write off delinquent accounts as a bad debt expense each year so any money that they receive is unexpected revenue. You may be able to settle a $5,000 credit card bill for $1,000.

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