Over the long-term, a damaged credit score can make life very difficult. It can be a challenge to get any kind of loan modification or receive refinancing approval. It is therefore imperative that borrowers who have been through a debt settlement, in order to avoid bankruptcy, pursue measures to rebuild their credit scores as early as possible.
1. Get Help
It is first important to review your credit report in order to ascertain the extent of the damage. Then, if it is possible, consult with a professional as to how it is best to proceed. A professional can even help with this initial stage, if you feel unable to assess your negative score yourself. Though they will generally charge a fee, such outside services can be the best means of ensuring that the score is repaired as quickly and successfully as possible.
2. Add Positive Information
It is the negative information on a credit report that brings down the overall score. While it is important to rectify these factors, it is also necessary to add additional, positive, information. These new positive factors can help dilute the negative aspects and bring the whole score up. In particular, several years of consistent payment history is generally needed to raise credit.
3. Ask Creditors
Sometimes, it is possible to repair your score merely by discussing your situation with creditors. While negotiations are necessary in the case of inaccurate or incomplete credit report entries, such tactics can frequently work in other cases as well. Though some creditors may refuse, there are those who will agree to your request if approached in an appropriate manner.