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HOW TO PREVENT CREDIT PROBLEMS
Credit problems usually result from a lack of communication between the you and your creditor.
Problems which are blamed on creditors usually arise from loss of payments in the mail, delayed posting, clerical and or computer errors. Problems blamed on you relate to unreported changes of address, underpayment, skipped payments and overextending one's credit.
Obviously, you want to keep your address current with each creditor.
When you move, note your new address on your statement form you send with payment. Be sure to complete a change of address card with your local post office.
In most cases, you have a 10 day grace period
from the due date for the creditor to receive your payment before you are contacted by phone or mail about being late. If you find that circumstances make it impossible to send in the full minimum monthly
payment, call your creditor and explain your situation.
Most creditors are willing to work with you and devise a repayment schedule compatible with both your needs to regain a current status. You are not considered 30 days delinquent until you have any monies currently owed pass 30 days from the due date on your statement. This is what you want to avoid!
It's good to note that most utility companies do not report your payment history to the credit bureaus.
If you find that you may be short on making the minimum payment on your credit cards that month, call your utility companies and explain your current situation. They are more sympathetic than your creditors and will help you work out paying a lesser amount that month, without harming your credit rating.
If accounts have become out of control and your creditor is threatening to turn the account over to a collection agency, be persistent in working out a plan with them to repay the balance.
You may also ask them to remove any negative information reported to the credit bureaus providing you do your part in repaying the debt. Make sure to have them send that agreement in writing. Remember, you must keep your end of the agreement or all is lost.
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