This article originated at: Poor Credit Auto Loans Tips
If you are weighed down by your student loan and are looking at student loan consolidation services or refinancing your student loans, then this article is a must read.
Today, many people are looking for ways to improve their credit. If you have a little debt or a lot, this article can help.
The first thing to look at is your credit score. Many sites are available to help you get a free credit score. When you know what your credit score is, you can begin to work on pulling yourself out of debt.
Ask your debtors if they have any type of payment plans available. You may be able to prevent the accrual of interest and late fees in this way. If creditors will permit you to pay on a future date without incurring late fees, you can then focus your efforts on paying down other debt, which has no such flexibility in payment timing.
Be certain to review your credit report and make a list of any adverse information. It is important to document each bad thing on your report. You need to know what’s on your credit report, because in some cases incorrect information or errors are reported. You can then contact the companies that reported you, and get those mistakes straightened out.
Be aware that you have rights when communicating with collection agencies. Collection agencies can not threaten you, nor can you go to jail for the inability to pay a bill. While each state has its own individual laws, you are protected from verbal harassment by the collection agencies in most cases. You’re not under the collection agency’s control. You continue to have rights even if you’re in debt. However, it’s up to you to learn them.
You should aim to have your credit card limit at a level that is less than 30 percent of the overall balance. The less you put on your credit card, the smaller your payments will be. When your balance exceeds 30 percent of your total available credit, you will find yourself wasting money on interest payments that you could put to better use elsewhere. Always check your balances, keeping them as low as possible.
You have a few options for dealing with debts that have been turned over to collection agencies. It might prove beneficial to consolidate your debt into a single payment plan. Collection agencies can only gain a profit if they are able to get money from you and therefore should be willing to negotiate with you. Though it might be tempting to try to avoid them, that won’t do anything to help lower your debt. It may even harm your chances of working with them at a later date. Give them a forthright appraisal of your situation. If you are struggling, but are committed to making installment payments, they might be willing to decrease the total amount to a lesser sum.
Use the suggestions provided and begin making improvements to your credit quickly. If you do these things, you will soon have a better credit rating.
The original post is located here: Considering Refinancing Your Student Loans? – Repair Credit Trauma With A Few Tips