December 23,2008
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Get Your Credit Rating Back, Pt. 1 –
– Getting back to basics.In these times when everything is going bust, some of us would like to pick up the pieces. Many of us have wounded credit card ratings through little fault of our own and will find it more difficult in the future as credit card lenders are becoming more strict with whom they trust. Here are some pointers to get back on top of the game and not be left with poor choices in the future concerning favorable credit card terms". It may involve starting from the ground up with a fresh foundation, which means becoming debt-free at first and then making the right choices with a fresh start. Art-full dodges and diversions won't help because your credit report has a way of trailing you. So the first step involves tagging the underlying problems, owning them and then resolving to rid them. So, this begins the first step:
A) Inventory your debt:
‘Matricize' your debt list in terms of ‘Interest Rate', ‘Debt Size', ‘Terms of Debt' and ‘How many Payments Involved. ‘High interest' or ‘amount due' on one credit card account can cause neglect in others. Too many simultaneous payments can cause high interest on one to eat you alive. Hide all the credit cards (except for one exception, explained soon).B) Call each lender:
Assure them sincerely that you have every intention of paying up. Credit card lenders would much prefer enabling you to pay vs. arm wrestling you for payment. They usually appreciate a sincere effort over despair. This is a great time to negotiate a payment plan. An accelerated plan can sometimes offer a reduced total or rate. ‘Automatic payments' are almost always welcome and usually offer discounts. Lower interest and rescinded penalties also help and are more available than most people know. Tap each of the credit card lenders for lower interest.