Your
credit report and consumer credit history influences your purchasing
power, as well as your chances to get a job, rent or buy an
apartment or a house, and buy insurance. Your consumer credit
history is very important. A history of timely credit payments
helps you get additional credit. Accurate negative information
can stay on your report for seven years. A bankruptcy can stay
on your report for 10 years. If you are having problems paying
your bills, contact your creditors at once. Try to work out
a modified payment plan with them that reduces your payments
to a more manageable level. Don't wait until your account has
been turned over to a debt collector. Financial institutions
look at your consumer credit history to make decisions about
your creditworthiness. There are many additional factors that
affect your consumer credit history.
Your
Consumer Credit History
Creditors
look at your ability to pay bills as part of your consumer
credit history. Your consumer credit history is also affected
by what type of credit you are seeking.
Here
are some additional tips for solving credit problems:
- If
you want to contest a credit report, bill or credit denial,
contact the appropriate company in writing and send it "return
receipt requested."
- When
you contest a billing error, include your name, account
number, the dollar amount in question, and the reason you
believe the bill is wrong.
- If
in doubt, request written verification of a debt.
- Keep
all your original documents, especially receipts, sales
slips, and billing statements. You will need them if you
dispute a credit bill or report. Send copies only. It may
take more than one letter to correct problems.
- Be
skeptical of businesses that offer instant solutions to
credit problems.
- Be
persistent. Resolving credit problems can take time and
effort.
- There
is nothing that a credit repair company can do for you —
for a fee — that you cannot do for yourself for little
or no cost.
If
you can't resolve your credit problems yourself or if you
need help, you may want to contact a credit counseling service.
Nonprofit organizations in every state counsel consumers in
debt. Counselors try to arrange repayment plans that are acceptable
to you and your creditors. They also can help you set up a
realistic budget. These services usually are offered at little
or no cost.
Universities,
military bases, credit unions, and housing authorities also
may offer low- or no-cost credit counseling programs. Check
the white pages of your telephone directory for a service
near you.
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