Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Debt Management Advice - Understanding Credit Scores

Having a bad credit score is just about everybody’s worst finance nightmare and something that we all wish to avoid. It gives the impression that you are not to be trusted (with money anyway), and nobody wants to hear that about themselves. Appreciating that good credit scores are based on trust and keeping (financial) promises means that there are ways of improving less than optimal credit ratings.

There seem to be a lot of stories going around about how a debt management program can hurt your credit scores. Usually, if you have a bad credit score this is something that is a result of not paying your creditors - not because you are involved in a debt management program. The debt management program is a symptom of dealing with the problem, not the actual cause.

When you already have a bad credit score going into a debt management program it is good to know that it can really only get better. When you join a debt management program the agency which assists you reports this. It can actually be evidence of your willingness to commit to and follow a payment plan to rid yourself of liability to creditors. If you are able to show you are trustworthy by meeting your monthly payments and maybe even paying some extra, they can report you as a good willing payer which effects your credit score in a positive way.

Although it can take a very little time to completely destroy your credit score, it can take a long while to restore it. Once a negative report on your payment behavior has been made, it stays there for seven years. Even though your credit score in numbers goes back up if you are sensible about paying out the debt, a negative comment may remain. Of course once you have shown that you are a payer that sticks to the deal that has been made, the negative credit history will be positively influenced.

Getting into business with a debt management company, or taking out a consolidated loan might result in reduced interest rates and lower payments allowing you to better meet your monthly obligations. This will in turn reduce the amount of time until you are completely debt-free which, of course, is good for your credit score.

As stated above, joining a debt management program isn’t of itself a factor which will negatively influence your credit score. It is merely a consequence of the debt that has led to your low score in the first place. However, faithfully participating in a debt reduction program which leads to payment of all your creditors in fact it can have a positive effect on your credit score.

In order to keep track of your credit score and be on top of your credit reputation it might be an idea to join a service which provides you with information about your credit. Then you can check where your rating is up to every now and again to know exactly where you stand.

Marvel Prescott   commented on 30-Aug-2015 11:55 PM
We are one.

Cynthia Burkhart commented on 07-Mar-2017 07:45 AM
Car insurance premium is always a considerable sum no matter how cheap your car was in terms of its cost.

Post a Comment

Captcha Image

spend money cancer stop harassment losing your job control spending debt consolidation medical debt loan companies paying bills saving debt consolidation loans interest rates filing bankruptcy household items lose your job interest doctors house loan debt company liability debt management credit companies your rights unsecured loan need money initial research more income past bad debt asset info management advice losing a job unemployed common debt traps payment frequency lending companies credit report emergency savings account Chapter 13 credit limit checks phone calls flat broke finances credit company investing rent payments budgeting debt collector help debt collectors professional debt problems insurance bank seperate accounts piling debts discounts debt management tips credit card companies debt settlement debt relief total balance home debts cash card debt child spending bad debt management debt solution help with debt learning experience paycheck family assistance credit card payday loan companies money debt traps credit bureaus insurances children saving credit negotiate paying out debt become free credit card help internet medical bills legal action chapter 7 buying a house loan save money specific budget categories gambling problem credit accounts prioritizing second job account charges bank accounts Consolidation Company software social services debt payment period debt consolidation good credit financial education common debt careful handling consumer lawyer help repay car loan credit line debt relief agency honesty account fees medical bill good debt unreasonable expectations negotiation budget categories good credit rating taking responsibility bankruptcy teaching children finance extra payments pay off bill credit rating account interest order report paycheck info unexpected expenses modified payment plan managing debt candidate debt collection agency mortgages good budget loan harassment budget ideas utility payments live your life credit card traps implement a budget illness personal finances interest payments bad debt pay off debt credit checks debt management mistakes regain control rebuild good credit credit repair take control of debt comfortable living personal finance back support repayment plans repay loans loss of income checking account worksheet purchase protection payday loan bills domestic support cable bill overbearing bills saving money financial security education monthly budget overcharging cash child support debt budget court appearance high interest rate payment behavior ongoing bills loans debt programs classify bills charitable organisation good credit record groceries understanding short sale check card monthly payments debt free live within means secured loan telephone bills reduce debts great budget management program management tips trusted friends monthly payment borrower expenses loan agents credit scores fly-by-night credit history savings hobbies visualization deals in writing job loss loan amount hospital credit score get out of debt spending younger children building debts debit card family budget overspending income child support handling money government assistance receipt borrow money understanding home equity restrict spending debt management advice less money school jobs credit card debt savings account own money monthly bill low interest introductory offers great budget ideas invest money installment plan home equity assets lending company original creditor purchases tax info credit cards security borrowing bad financial decisions mortgage payments ill health making payments new job down payment installment plans tracking money interest rate credit card company full details extra money part time job sickness credit reports children budget budget sheet gambling debts deb consolidation creditors salary debts whole family allowance injury home equity loans

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs