In today's economic climate, almost everyone is experiencing some kind of credit dilemma. The average amount of per household credit card debt in America is over $16,000. If you are one of the individuals struggling to repair your credit, there are a multitude of options for you to pursue.
Go to Your Creditors
If you have fallen behind on your credit card, loan, car or mortgage payments, chances are you have instinctively been dodging the calls of your creditors. Don't do it. Creditors are looking for one thing: to get their money. Talk frankly with the creditors to explain your current financial situation. Many will be willing to defer or lower your monthly payments. This is critical because it helps you avoid future negative write ups on your credit report, and because it helps you to pay down your debts in a way that you can manage. This helps to fix your credit in the long run.
Go to the National Foundation for Credit Counseling
The National Foundation for Credit Counseling (NFCC) is a non-profit credit counseling organization. The provide a variety of resources on how to improve your credit score and eliminate debt. They also provide hotlines you an call with counselors available to give you personalized instruction on how to bring up your credit score. Utilizing their services is a great way to help get your finances back on track because they are able to give you a personalized strategy for financial health. There are also various state and city credit counselors available, but the NFCC has the widest array of resources and contacts at their disposal.
Go Get a Secured Credit Card
Orchard Bank markets their credit cards as cards to improve your credit score. They are able to pre-qualify you for low credit limit cards in order to give you an opportunity to rebuild your credit. Credit, unfortunately, tends to work as a catch-22. You can't get a credit card with bad credit, typically, and you can't improve your credit score without having a certain amount of credit to your name. Orchard Bank helps to alleviate this problem by giving you the opportunity for credit that you might not be able to get elsewhere, and reporting to local credit bureaus on a monthly basis to demonstrate financial responsibility on your part. This is not a guaranteed approval, but it can help. There are other banks that offer similar cards, but Orchard is the most widely used and respected. Regardless, you should do your own research to make sure you are opening the best credit account for you.
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