It is a common refrain: “Your credit score is vital to your life, your happiness, your continued prosperity.” Regardless of how much this makes someone sound like a broken record, it is so true. Unless you are a financial maverick or can suitably live under a rock, there is nothing more essential to your financial health and future than to protect your credit score. You don’t need to be in credit card negotiations to heed these tips. Creditors are good at keeping records on their behalf, not necessarily yours!
Rule #1: Creditors want to make money
By nature, creditors are not out to hurt your reputation. They want to make money. They will use your financial reputation as leverage to get that money. If you miss a couple payments of and your creditor is calling, see if you can’t get them to put “paid as agreed” on your credit report in return for the cash they are seeking. You can use the money you owe them as a leverage to protect your credit score.
Push for a “Paid as Agreed” on your credit report
There are exceptional situations where little things sneak into your credit report, and are tiny but important blemishes that can have a long-term impact on your credit.
In some instances collection third parties and foreign governments will hire collection agencies to collect relatively small fees and fines you incurred while traveling or living overseas. This is just one example where you may be completely unaware your credit is in trouble because you and the creditor are too far removed to communicate. These little things may go years unnoticed, but add up. Deny, deny, deny and finally insist on having your credit fully restored if you do have to pay up.
Lastly, collection agencies use credit bureaus as a means to force clients to pay up. They are not interested in your long-term financial picture like financial institutions are. On the condition that you intend to pay in full or are using a payment plan, use the collection agency as an intermediary to push the original creditor to restore your credit status in full.