There are a host of reasons why individuals and businesses end up with debt problems and a tarnished credit file and it is never a nice place to be. Sometimes we succumb to the credit cards and loans thrown our way but the loss of a regular income and an emergency expenditure can also be enough to tip us over the edge.
It is never too late to sort out personal credit issues, or to repair B to B credit problems, but it does take patience, persistence and organization. One of the first questions you should ask yourself is: ‘Do I need external help to manage this?’
Consider Asking for Expert Help
Whether you are looking to repair B to B credit or to repair credit issues as an individual, Speed Fund can give you that extra support you might need to tackle your problems effectively. Working through highly respected credit repair firm Better Qualified, Speed Fund can ensure your file is dealt with in an effective and sensitive manner.
Expert help can take the pressure away from what is often a stressful and emotional issue, dealing with CRAs and creditors on your behalf while focusing you on the positive steps you can take to improve your personal score or repair B to B credit to open the way to the best business rates.
Reviewing your Report
You may or may not realize that there is a designated place where you can safely order an annual copy of your credit report from each of the country’s three main CRAs. Simply go to www.annualcreditreport.com and follow the process indicated there. You will not be given your actual score but you will be able to see anything that is likely to be driving that score down.
Speed Fund partners Better Qualified can run through the report with you, but as a guide you will see four pieces of information: your ID details; any credit accounts you hold and their statuses; all credit inquiries carried out in the past two years and public records and collections.
You can only hope to repair credit problems if your file is accurate, so the first step on the path is to check all four sections for errors and omissions, especially your ID details as discrepancies here can indicate fraudulent activity. Credit reporting agencies are legally obliged to respond to any claims of inaccuracy, usually within 30 days, and if errors are found in your credit accounts, the creditor has to update all three CRAs and you will also be permitted another free credit report. Again, Better Qualified, working through Speed Fund, can assist in both identifying errors and ensuring those involved fulfill their responsibilities.
Organizing Future Payments
Your payment history contributes around 35% of your credit score, so if you can sort this out you are well on your way to climbing out of trouble. The easiest way to keep on top of payments is to set up auto deductions from your bank, making sure you schedule them for just after your income arrives (salary, welfare payments, etc.) You will be left with irregular payments and general household expenditure.
Get Out of the Plastic Habit
Credit cards are regularly the most dangerous forms of credit as they often have high interest rates and apply harsh penalties for missed payments. They also enable people to spend money they don’t have which is the main driver of debt. Get used to budgeting more carefully by cutting down on ‘wants’ and using your debit card and cash to purchase your ‘needs.’ Don’t cancel your credit cards unless there are account fees involved: the ratio of debt to available credit is used in your credit score calculations and if you take away lines of credit your score is likely to suffer
Use the Avalanche or Snowball Method to Repair Credit
Once you are on top of current payments (remember, that’s 35% of your credit file) and living within your means you will need to bring down existing debt to finally repair credit. Here is where Speed Fund can help by engaging Better Qualified in the negotiations with creditors, many of whom they will already have close working relationships with. This can help secure favorable repayment terms.
Most experts advocate the avalanche method to pay down debt and repair credit. This involves paying the debt with the highest interest first. This makes financial sense as it minimizes the size of debt and speeds up the process. However, some people prefer the snowball method, tackling debt in order of size with the smallest amounts cleared first. This is the slower and more expensive route overall but does offer the psychological benefit of seeing small chunks of debt cleared earlier.
Whatever your decision, remember you do not have to do any of this alone. Speed Fund and Better Qualified are on hand to repair B to B credit files and improve individual credit scores – all you need to do is fill in the simple online ‘Getting To Know You’ form and we will be in touch.