Steps to Take Before Paying Your Collectors

Before you run off to pay your collector to boost your credit score, remember these tips:

  • Once a collector gets your money, they’ll forget about you the next day. Any verbal agreements you might’ve made with them will be quickly forgotten.
  • Make sure everything is in writing! For example, tell a collector to write the following in your file: “If I pay this, I will be paid in full, settled in full, and you will remove it from my credit report.”
  • Negotiate at the end of a period since collection agencies work on quarterly or monthly statistics.

Believe it or not, collection companies aren’t all that bad. Although they want your money and they can be obnoxiously persistent about getting it, they’re also willing to work with you. If you cooperate with them, they’ll cooperate with you.

Ready to take the first step to improving your credit and buying a home? Download our free Home Mortgage Success worksheet. 

How Fast Can You Improve Your Credit Score?

Have you ever wondered how fast you can improve your credit score? Most cleaning credit companies would like you to think it takes 1-2 years, but that’s not true.

Realistically, you can improve your credit score in 3-6 months (not years). All it takes is:

  • Understanding the mistakes you made and the traps you fell into early in life.
  • Having an income to support a new loan.
  • Learning how to use a broader product mix, more aggressive underwriting, and companies who actually take on extra risks.

We truly believe we can teach you how to negotiate your debt, and how to do it right.

And how to do it fast!

Common Lenders to Avoid

Just because a bank says no, doesn’t mean you can’t get a loan. In fact, you can get one in six months or less. How? By avoiding these common lenders:

  • Mainstream “Big Bank” companies since their focus is volume and quality credit.
  • Traditional mortgage companies. They focus on closing deals in 30-days because they pay their sales staff commissions once a month.
  • Credit Unions. Most don’t have the resources to focus on clients who need a little credit help.

Ready to take the first step in getting a home loan? Learn more at smartwithdebt.com.

Credit Tips: Make More than You Spend

Another credit card downfall many people need to be aware of is how much they’re making versus how much they’re spending. If you have more bills than income, creditors will frown upon you.

This tends to happen to many of us when we’re in our 20’s. At this time in our lives, we’re often presented with a minefield of temptations, bad decisions, and hard lessons.

It’s okay.

As Smart with Debt, we want to help you cross that minefield unscathed. Or, if it’s too late and you stepped on a financial bomb, we want to help put your life back together so you can own a home and save money.

A lot of money!

What three habits do people with good credit scores have?

Do you ever wonder how people achieve such high credit scores? Well, find out some of their habits here!