Contacting Creditors to Help with Credit Repair

If you've tried shopping online without a credit card, then you know how difficult and annoying it can be. Our modern world has moved increasingly in the direction of using debt to function in society, which means if you have a poor credit history and can't get a credit card or loan, you can really be hamstrung.

Having a good credit history is also important when you want to rent a car, rent a property, buy at certain stores without a deposit or get a home mortgage. It's not hard to get some negative entries on your credit history. Miss a payment, and your credit will immediately report you to a credit bureau. Do it a few times, and all of a sudden you might find it a lot harder to access credit or get a loan. The scary part is that these negative entries will stay on your credit history for as long as seven years. That's a long time to wait before you can access credit again.

You might be tempted to give up at this point, figuring that now your credit history is stuffed there's not a lot you can do about it. Well, that's not true, and the sooner you start the credit repair process, the better off you'll be.

The first thing you should do is contact any creditors where you're behind on payments. Most people do the exact opposite - they're ashamed and embarrassed, and the last thing they want to do is admit they're having trouble paying. This is just about the worst thing you can do. A creditor would prefer to hear from you and work out some kind of payment plan that works. If they get no response to their letters of demand, then guess what - you'll keep getting more letters, and soon enough you'll have a negative entry on your credit history. By working out a solution, you can avoid that happening, as long as you stick to your end of the agreement.

You should always remember that the creditor really doesn't want to go through all the hassle of chasing you for the default. They're much happier to get their money, even if it takes a little longer than it should. After all, pursuing you for a default is more likely to end with them getting nothing at all if you go bankrupt. So discussing your situation with the creditor is always the best first step.

This is also true if you already have a negative entry from a creditor on your credit history. Contact them, and discuss how you can pay back the debt as quickly as possible. Don't make promises you won't be able to keep, but put together a sensible plan that you can stick to. After all, if you default for a second time, you really will find it almost impossible to work things out in a positive way.

Always do your best to remain positive when dealing with your creditor, because often the impression they have of you will influence whether or not they give you a break or list your default immediately. Maintaining a positive, constructive dialogue gives you the best chance of improving your credit score, or even avoiding getting a negative entry on your credit history in the first place.

Dealing with creditors and discussing your financial difficulties isn't easy, and it takes some courage to make the phone call. But in the long run it's one of the best credit repair strategies that you can pursue. So put together a plan, make the call, and you'll be glad you did.