Settling unpaid debts will improve your credit history. When you have unpaid debts, they negatively impact your credit report and your credit score. Settling unpaid debts can open up new doors for you and help you achieve certain life goals.
Why You Need To Settle Unpaid Debts
Settle unpaid debts because of the impact they have on your credit report. If you have unpaid debts that haven't been settled, you may not be eligible or you may have to pay more money in order to get an apartment, apply for a job, buy a home, buy insurance or apply for a new credit card. Landlords, hiring companies, insurance companies, lenders and credit card companies all use credit reports to determine credit worthiness. You may not get turned down by a landlord, a lender or an insurance company based upon the information in your credit report. However, you won't be eligible for the best rates and you may have to pay more money strictly based on the negative information in your credit history.
Ways To Settle Unpaid Debts
Settle unpaid debts by getting a loan and wheeling and dealing and your way out of debt. Debt consolidation loans and can help homeowners settle unpaid debts. In some cases, you may be able to wheel and deal your way out of debt. Contact the collections agency, the credit card company, hospital or other entity you owe money to and find out if you can make a deal to settle your debt for less than you owe. Make sure to request ahead of time that the companies remove the unpaid debt from your credit report once payment has been made.
Ways To Improve Your Credit Score
There are ways for you to improve your credit score quickly. Credit reports are updated frequently based upon information supplied by reporting companies. First, order a copy of your credit report with credit score to determine your problem areas. Experian's Triple Advantage program includes helpful tips to . Applying for a or loan and then making regular payments in a timely manner will also help improve your credit score.
