While credit negotiations do not damage your credit, you may have some damage done by your previously delinquent account status or missed payments. Anytime you are working to repay your debts, make up missed payments or maintain a modified payment schedule, it is important to monitor your credit report closely.
Getting The Most Out Of Your Credit
If you have had to develop a debt management plan or negotiate your debts with creditors, chances are you have missed at least one payment or more. While this isn’t going to ruin your credit for life, it does put you back a few steps. The great thing about negotiating your debts is that you can secure a lower payment or modified payment term that will better suit your budget.
Although you may be making consistent payment to your creditors at this point, it isn’t uncommon for the creditor to keep things the same. This means that your credit standing may not adequately reflect your consistent payment status or have the delinquency account status removed. Follow these simple steps to help boost your credit after a negotiation:
- Get a copy of the negotiated deal in writing.
- Stay in communication with your lender throughout the process.
- Request a copy of satisfactory account status from your creditors.
- Keep copies of your payments to creditors.
- Request that your lender update your account information with the credit bureau.
- Monitor your credit report for inaccuracies and dispute any incorrect or missing information.