Negotiate credit card debt

If one of these cases is, or has been your situation, chances are you have bad credit:

- If you have paid any installment loans like a car loan more than 60 days late, or a mortgage loan payment more than 30 days late

- If any of your credit, loan, store, or bank accounts have been turned over to professional debt collectors

- If you have credit card or line of credit accounts that are currently very near or over the limit

All of the above scenarios can cause your credit score (or FICO score) to be under 620, which is generally considered to be in the ‘bad credit’ range. You want to take steps to improve this score immediately if you are applying for a loan, credit card, or job that requires a fair credit score.

One way to make improvements to your credit score is through credit repair. Credit repair is necessary when there are items on your credit report that are inaccurate or incorrect. If you obtain your credit report and find there are items that you would like to dispute, the credit bureau by law must investigate your claim and resolve the issue within 30 days. If there is no evidence to support your claim, the item must be removed from your credit report. You do not need a lawyer or law firm to handle this for you – it is free when you do this on your own. In the end, the less negative and incorrect items that are listed on your report, the higher you credit score will be.

It is very important to examine your credit report closely to make sure all items are correct. If there are any errors on your report, even one, you can benefit from bad credit repair. In this age of technology, it has become easier for identity thieves to get a hold of your most personal information, use it to make purchases on your credit cards, open new accounts with your name, and then fail to pay on those purchases. Make sure you are not an identity theft victim by reviewing your credit report closely. If you find inaccurate accounts or information, file a dispute. These items must be removed from your report – thereby increasing your score and helping you to restore your credit worthiness.

Another method when considering bad credit repair is debt negotiation. Debt negotiation is a credit repair method that works with your creditors to reduce the outstanding amount you owe on an account. Many times, your outstanding balance can be reduced to an amount that is 40%-60% of the original debt. When you or a professional debt negotiator comes to a settlement agreement with the creditor, you pay the reduced amount. Once this amount is paid (either monthly or in total), the account is considered paid in full or “settled”. The fact that debt existed will still be reported on your credit report for up to 7 years, but not having as much debt on your plate can increase your score and your debt to income ratio will also improve.

If you have a lot of debt and it seems unmanageable, you might want to consider debt negotiation. When your accounts get out of control, you run into a lot of issues including increasing interest, over the limit fees, and if your account is sold to a collection agency, they can add fees on top of your outstanding balances. All of these factors can lead you deeper into debt with no foreseeable end in sight. Debt negotiation can be a great way to work down your debts and start a new credit future.

By: Ken S

Tags: Bad Credit Repair, Bank Accounts, Car Loan, Credit Accounts, Credit Bureau, Credit Cards, Credit Loan, Credit Report, Credit Score, Debt Collectors, Debt Negotiation, Installment Loans, Loan Credit, Loan Store, Mortgage Loan Payment, New Accounts, Scenarios, Score One, Theft Victim, Thieves