There is no reason to feel guilty....
Before you can worry about repairing your credit history you must first get your affairs in order. You can only accomplish this by first getting organized. So let’s begin by creating a list of your current income. This means including everything from government checks to pension checks. Now that you know what you have coming in on a monthly basis it’s time to figure out your expenses such as car payments, school loans, utilities, rent etc. This is considered a balance sheet and by putting one together you will have an excellent idea of exactly where you are going wrong with your personal finances.
Your next step is to directly contact the creditor. If you were previously a good customer in most cases the creditor will be willing to work something out with you. This is an important step towards repairing your credit history. Once you and the creditor have come to an understanding do not forget to request that they remove any negative mark that they may have placed on your credit report. You will always want to get your mutually agreed upon agreement in writing. It will be a lot easier if you write up the agreement and send it to them along with a self addressed stamped envelope.
If you have a damaging history of delinquencies, and a poor credit score, I recommend that you write to the creditor asking them to change any charge-off to a, “paid as agreed”, or “paid in full, on-time.” The same strategies that I am sharing with you right now will also work with collection agencies and credit attorneys as well. The most important thing about using this technique is to remember… DO NOT SEND ANY MONEY UNTIL YOU HAVE AN AGREEMENT!!! In the past I have had students send a payment in with the agreement letter just to find there self standing in front of a judge, and worse than that they lost the case and ended up spending more money.
With your agreement in place you are moving in the right direction. You can keep up the good work by starting a new line of credit. This is a strategy that is often over looked and that can immediately increase your credit score by 150 points. In order to start a new line of credit all you have to do is get a secured credit card, secured loan, or a car loan. Out of the methods that I have just mentioned obtaining a secured credit card is by far the easiest one. It is also important to note that you should never let your balance go over 20% of the maximum credit offer. Get Equifax Credit Watch Gold 3-in-1 Now!
The strategies that I have just shared with you will indeed help to repair credit history, however it isn’t enough. You will also want to correct some errors that you currently have on your credit report. If you were to listen to the media you would believe that the best way to repair your credit is to use a credit repair agency. However if you were to to believe the Federal Trade Commission (which would be a wise choice) they explain that there is nothing that any other agency can do for you that you can not do for yourself. In fact they recommend that you do repair your own credit.