| The times are tough, economic downturns have left | | | | your debt to a collection agency, then you will need to |
| many people jobless, and unable to pay many of their | | | | negotiate with them. If you wish to pay the debt off, |
| bills. The ending result is that most Americans' credit | | | | and you have the money to do so, negotiate a |
| score will plummet, and bankruptcies will be rampant. | | | | settlement that is lower than what you owe. |
| The good news is that if you currently have bad credit, | | | | Remember, debt collection agencies buy your debt for |
| or are heading in the direction of bad credit, there are | | | | pennies on the dollar, so most of the time they'll take a |
| several ways you can work on improving your credit | | | | low settlement. Sometimes when dealing with the |
| score and restoring your credit. | | | | creditor, if you are able to pay the amount in full, you |
| First off, the first thing you need to do, is to obtain a | | | | may want to ask about a deletion of your record for a |
| copy of your credit report. This is vital for anyone who | | | | payment in full. Some creditors will do this in order to |
| suspects that they have a poor credit rating. The three | | | | get your money, and you are left without the bad |
| major credit-reporting agencies, Equifax, Experian, and | | | | credit stain. |
| TransUnion are each required to provide a free credit | | | | One common mistake which people make is that they |
| report to consumers who request one, every 12 | | | | close their credit accounts, when they plan not to use |
| months. is the only site authorized by the three | | | | that credit account again. Don't do this! If you don't wish |
| agencies to provide the annual reports for free. | | | | to use a credit card again, just cut it up, or shred it, and |
| One way to improve your credit score is to contact | | | | simply leave the account open. A matured credit |
| the creditor(s) which you owe money to. Attempt to | | | | account in good standing reflects positively on your |
| negotiate a monthly payment plan to the creditor for | | | | credit report, even if the balance is at $0.00. |
| debt you owe, because paying anything per month is | | | | You can see that there are many ways that you can |
| much better than just leaving the debt alone. This will | | | | improve your credit rating with just a few small |
| also show that you are willing to pay the debt back. If | | | | changes. As always, you should try to pay your bills |
| your debt is 3 years or older, you might want to check | | | | within 30 days, and keep up with your credit report. If |
| the Statute of Limitations for your state for written | | | | you ever find anything wrong with your credit report |
| contracts. If the debt is beyond the Statute of | | | | you will need to write the agency which produced the |
| Limitations, then don't pay anything at all. By making a | | | | credit report, and ask them to correct it. It would be |
| payment or agreeing to a monthly payment plan, you'll | | | | best if you have proof, such as a receipt or copy of a |
| restart the clock on the Statute of Limitations. | | | | check to which you paid off the debt. |
| If your creditor has informed you that they have sold | | | | |