| Repairing Your Credit, and Avoiding Declines |
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“We’re sorry to inform you we can’t approve you at this time”, what many hear every day. What this means is one of 2 things. Either the information you provided them didn’t give them the confidence they could make money from you, or they found things on your credit report that had the same effect. It’s often the latter. There are 3 credit reporting companies that are the major force behind this. They keep information on many about their payment, address, employment, and legal (financial related) history. For a fee and upon request, they provide creditors, potential creditors, insurance companies, employers, landlords and others this information. The information is reported by your creditors, and includes late payments, judgments, among many other sources. A credit score is also assessed based on all information. Secondary, address information each time it changes, as well as every time someone inquires for a copy of your report will show as well. These all reduce the score, some things longer than others. Normal information lasts 7 years, bankruptcy and judgments 10 years, and simple inquiries at least 1 year. These companies are TransUnion, Equifax, and Experian. Lower scores cut out a number of better finance options, and can even leave you stuck with high interest rates or possibly not even being able to get finance. Further, with the times, a lower score can cause you to have to pay more for certain insurances and housing. They can also prevent you from getting some jobs. The times are hurting everyone this way, cause you cant get what you need when you need it whether it’s wheels to get to work, the job itself, or where you go home at the end of the day. Bankruptcy has been on the increase for many years now and it isn’t getting any better. It’s left many new roles out there as well, such as increased lawyer opportunity, debt counselors, and other resources that attempt to counter bad debt, some of these that aren’t good will make it worse in the long-run. Bankruptcy can hang around on your credit report for 10 years, though it does quell the debt. Really, anything that doesn’t pay off your debt is negative. Most debt management counselors charge at least a small fee. If they help, it’s worth it, though on the other hand if they don’t, it’s just money taken away from getting out of debt. Researching to find the best choices is wise. Also look for laws that can help you in this area, as well as regulatory agencies that make sure they do what they say. Getting far behind will effect your credit even more, as will often lead to judgments, lawsuits, repossessions, foreclosures, and more. These definitely have a major negative effect on your report. In other words, possibly homeless, vehicle less, hungry, broke, and then some. The answer is to find all the choices there are when getting behind, find a better way, and get to it. These may include cutting some of your current expenses, such as turning the heat down a little, and the air conditioner off. Turn lights out when unneeded. This can reduce a number of utility bills. If your mortgage is too high, or car payment for that matter, you might need to sell for the best you can and pay them off and get something more affordable. This may not be possible if you owe a lot more than these items are worth. You may also want to find a second job, or consider finding a better main job (pay wise). If you are a hard and long-term worker, chances are there is a better job out there for you. As far as second jobs, there are many part time jobs available in restaurants, stores, and many other places. Beyond that, paying off what you owe is the means to better credit. As you go along and your score comes up a bit, you may find some new options that can help accelerate it more, though look carefully. A good mortgage or debt consolidation loan can help. Though there are many not so good too. Look at all the options. Avoiding declines is just one indicator of your credit score. But it’s a good reminder to keep on the lookout and do your best not to get buried in the first place. In the end, there is one person that can get you into trouble. There is one person that can get you out. You see both of them in the mirror every time you look. |
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