There may be several excuses for allowing your credit rating to suffer. You may believe that by leaving it alone, it will eventually fix itself. Many people fall into this same category. It’s true that bad credit reports will eventually fall off of your credit report, but it can take up to ten years, especially in the case of defaulted loans or bankruptcy.
Perhaps you are not sure where to start, and, again, you would not be alone. Your first step is always to obtain a report and begin looking for possible errors. By calling your creditors, you let them know that you are willing to work for a better credit rating. You may think that it is too hard to make everything better, but life is actually much easier once you begin to repair your credit rating. Doors that were previously closed will begin to swing wide open, and you will be glad that you made the effort.
Many make the mistake of applying for loans with a spouse’s good credit. This might seem like the easiest way to make things happen immediately, but the truth is that your bad credit is still waiting in the wings, ready to make things harder on you the moment your spouse’s credit is no longer available to you, for whatever reason.
Keep in mind that you do not need large amounts of money to repair your credit. It may be helpful to pay off larger loans if possible, but you can also negotiate for lower payments or for forbearance. Those options cost absolutely nothing but your time. By calling the creditors, you will not be making things worse. In fact, by giving them the heads up that you are working on fixing the situation, you may actually stop harassing phone calls.
You must be willing to make a few sacrifices to get your credit back in good shape. By cutting out luxuries, even for a few months, you can free up a few extra dollars that can go toward bringing accounts current. Sacrifice is probably the most important tool in repairing your credit, actually, because you will have to sacrifice plenty of time to get all of your affairs in order. Repairing your credit won’t be a fun activity, but it will certainly make things easier on you in the future. Buckle down, do the work, and you will eventually reap the rewards.