Things You'll Need:
- Telephone
- Bills
- Credit report
-
Step 1
Call your creditors or bill collectors and let them know the situation. Communication is key. When you don't communicate or pay your bills, the collectors think you have skipped town and they will never get a dime. Instead, call them and work out a payment schedule, or let them know why you are late with your payment.
-
Step 2
Pay your bills on time. Once you have called all you delinquent accounts, pay them on time. Many companies will let you work out a payment plan. They want their money, so they want to work with you. Keep to the agreed upon schedule.
-
Step 3
Leave your credit accounts open, but discontinue their use. Once you have paid off your credit cards or lines of credit, do not use them. You don't want to get into the same credit crunch once again, but you definitely don't want to close the accounts. Closed accounts tend to bring down a credit score. Cut the cards up if you have to, but don't close them.
-
Step 4
Suspend all new loan or car insurance inquiries. Do everything you can to eliminate all credit inquiries. The most credit inquiries you have, the more your credit score drops. Lay low for a few months while you fix your credit problems.
-
Step 5
Check your credit report for errors. You can check your own credit report without negative scoring, for free. Each year you can check your report for errors with all three credit agencies for no money out of your pocket. Look for any mistakes that could be hurting your credit.
