The content is accurate at the time of publication and is subject to change.
In times like this, when the entire global financial empire is reeling from an economic disaster, it can be very difficult for people to maintain a credible financial history. Long term investors who have been managing their finances diligently, will be in for a shock when they realize they`ve lost the hard earned money they invested to companies no longer in existence.
However, all is not lost. You can still salvage the situation if you take the right steps as fast as possible. We shall go over a few steps that you can take that will help you sort out the problem as fast as possible.
Firstly, you need to review your credit score. You can apply for a credit report with one of the credit reporting bureaus, and find out your score for free. Only when you see your score will you know how bad the situation actually is. A high score is very much necessary for any financial move that you intend to make. You can get up to three free score reports from the credit bureaus every year. And you can also enroll yourself into a credit reporting web portal that will give you anytime access to your score if you make an annual payment.
Secondly, you will have to clear all your outstanding debt. Clearing debt is the first move that you need to make to decisively solve the problem. You can start by finding avenues that can help you clear the loans. Try getting a debt consolidation loan from experts who specialize in the same. These individuals specialize in giving out loans to people who have a low credit score for very low interest rates. If you have several outstanding credit accounts, you will have a big problem in following all of them and making minimum payments in time. But if you manage to consolidate all those loans into one single conventional long term loan, you can easily pay it off at lower interest rates. And if any of your loans are approaching default, it is better to negotiate and settle for a smaller amount than letting that mark on your record.
Thirdly, you have to change your lifestyle. The very fact that you have arrived at the point you have reached, is because you have spent more than you earn. If you manage your spending such that it does not exceed your income, you need not rely on credit. Having a credit card must be in order to ease your day-to-day activities; it must not be relied upon as a necessity. It is only when you start thinking of it as a necessity that you will put yourself in deep trouble, as you will then have to start thinking up ways to pay back the money by the end of the grace period. Taking these small steps will go a long way in ensuring that you have a good credit history.
