Tip #60: Talk to lenders and creditors
Many people are hesitant to keep an open line of communication with their lenders because they are embarrassed about their financial state or because they feel unsure about the position.
Lenders can’t read your mind, though. They do not know that you can’t make a payment this month but will be able to make a double payment next month because of a banking error. They simply see that you have failed to make a payment - this may indicate a temporary problem or a decision on your part to default on your loan.
Without your input, your creditors have no way of knowing, and since their profits and money are at risk, they tend to take the more conservative view and even assume the worst. Keeping the lines of communication open as soon as a problem develops can help reassure your lenders and can help your creditors see that you are responsible with their money.
Talking to lenders as soon as a problem develops can be an effective way to prevent a ding on your credit score that can affect your credit score. For example, if you are giving trouble paying your bills, you can often work out a more reasonable payment schedule.
In most cases, you will not get a ding on your credit record if you do this because the lender will have some assurance that your financial obligations will still be met. In fact, one of the things that most credit repair companies do is to arrange for more reasonable payment schedules. With a simple phone call, you can do this for yourself for no charge.
Lenders want, above all, to be repaid so that their interest rates can earn them a profit. By communicating whenever there is a problem and showing that you are willing to work hard to meet your responsibilities, you show your creditors that they will get their money and this makes lenders more willing to work with you to ensure that your credit rating is not badly affected by one missed or late payment. Speaking with your creditors can help establish a good working relationship that can help keep your credit rating in good shape.
Tip #61: Get lenders to waive late fees and charges
If you have missed some payments or made some late payments, lenders will often charge you a fee for non-payment. This not only adds insult to injury - you have to pay more on your bills and get a ding on your credit - but also makes bills more difficult to repay since the bills are now higher. You can phone the lender and get the charge waived in most cases, though. This is a secret that credit repair companies have long known and is one of the first services they will perform on your behalf. You can easily accomplish this for yourself, however, at no cost.
Lenders want to get paid, and if they think that you will pay your bill more quickly by waiving the late fee, they will most often gladly remove the fee in exchange for prompt payment.
Develop an Organized Strategy to Repair Your Credit Score
Staying organized and on-track is very important when you are trying to boost your credit score, because there are so many details to follow up on and so many things to remember. A few basic organization tips can help make sure that you do not overlook anything that can cost you your good credit score:
Tip # 62: Stay financially organized
Keep all your financial records - including tax records - in one place. Note the days you paid your bills on the bills themselves. Note how much you owe and where you owe money. Keeping your financial information in one place allows you to refer to it easily. Seeing all your financial life in one place also makes it easier for you to see where your credit and your financial life still needs work.
Some of the information you may want to keep in your financial file includes:
-Bills
-Tax receipts and forms
-Articles and pamphlets about debt
-Your credit reports and scores
-A list of contacts that affect your financial life (such as your bank and credit agencies, for example)
-Your written emergency plan, detailing what you should do in case of a sudden loss of job or other problem
-Banking information
-Financial forms
-Investment information
-Deeds to your assets (such as your house)
-Agreements you have signed for loans and other financial services
-A list of your financial goals
-Insurance forms
You may want to buy a box and keep your separate information in different labeled folders (tax information together, for example, and bills in another folder) for easy referencing. Whatever system you use, you will find it much easier to manage your finances - and your credit - if you don’t have to hunt for random pieces of paper.
Visit www.credithelp21.com for you very own “DIY” Do It Yourself Credit Repair Kit.
If you are looking for mortgage financing or need to use a free financial calculator go to www.questgroup-usa.com
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