Work Out a Plan with Lenders to Achieve a Better Credit Score
"Most people don't realize that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt. For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding. If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it. If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score. You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports. You are entitled to one free report every 12 months. For more information on getting your free report see the Federal Trade Commission Website."