By Dr. Kavita
Your credit score could have plummeted due to several reasons that were out of your control. Maybe you were hit by the recession. Or you just went through a divorce or you lost your job.
These reasons have no way of being controlled and modified by you, but try saying that to your credit reporting bureau. Even if you were in no way responsible for what happened, you will still be held accountable for your poor credit score that has resulted from these occurrences.
Here are some basic steps that you can take to fix your poor credit score.
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Do a quick assessment
Any situation needs to be studied properly before you can apply any remedial measures to rectify the problems. So, take a quick view of your financial affairs and see what can be fixed and what needs to go. In case you find yourself to be incapable of paying your credit card bills on time, you will have to say so frankly and intimate your credit card company.
They will agree to accept a certain amount (that is lower than your current outstanding amount) and end the matter there. But they will send a report to the bureau which reads ‘not paid as agreed’. If this is the case you will be hurting your score all the more. Instead, get the company to send in another report which reads ‘now paying as agreed’. But the nature of the reports will depend hugely upon your negotiation skills.
Use the notes section
Your poor credit score can hurt your prospects of finding a new job. Employers usually run a credit check before employing anyone. You must make use of the notes section on the credit reports to inform your prospective employers about the reason that led to your poor credit score. You can even attach proof like a doctor’s note to prove that you were ill or hospitalized and that was what affected your job and score.
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Apply for secured credit cards
Secured credit cards are a boon for people like you who are struggling to build back their credit reputation after it was butchered by a poor credit score. Apply for one and use it to slowly build back your credibility. Secured cards are prepaid cards that offer only a certain percentage of credit against your deposited amount.
Try out credit unions
Credit unions do entertain people with poor credit scores. They usually have a variety of packages to help people out like free counseling, credit cards specifically designed for people with low credit scores, options for starting a rebuilder or credit builder loan etc.
Whatever you do to tackle poor credit scores must be aimed at building back your creditworthiness.
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