Rebuild your
Credit Score
Missed payments and over-the-limit accounts can cause your
credit score to plunge. This negative information can remain on
your credit report for seven years.
A lower credit score means that it will be much harder to buy
on credit or to get consolidation loans. To make matters worse,
the missed payments and high balances that cause your credit
score to drop also cause your interest rates to go up.
Credit counselors are trained to help you stabilize your
financial situation so that you can recover. Many strategies and
tools that credit counselors have available to them can help you
defeat debt and salvage your credit score.
A debt management plan can actually help you rebuild your
credit score. Some mortgage professionals still believe that a
debt management plan will cause your score to drop. However,
Fair Isaac released the results of their research study, finding
that consumers going through credit counseling were no more
likely to default on their debt than those that did not. That's
a pretty remarkable statement considering the weakened financial
situation that clients can be in. Following this study, Fair
Isaac removed any input for credit counseling from its credit
score calculations.
By completing a debt management plan, your credit accounts
can be brought back to a current status, your payment history
will show consistent on time payments and your balances will be
paid off. Your credit score will continue to increase as you
make progress on the plan. You can rebuild your credit score.
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