Negotiating directly with creditors to improve your credit score

If you have fallen behind on payments or your credit score has taken a hit, negotiating directly with creditors can help get you back on track and improve your credit profile. Here are some effective strategies for working with creditors:

Explain your situation – Be upfront about … hardship if needed. Creditors may be willing to offer options like reduced payments, waived fees or adjusted due dates to help you repay and rebuild credit.

Request account updates – Ask creditors to report your account as “current” if you make the agreed upon payments. This can quickly help boost your score as long as you follow through.

Seek rate reductions – Interest rates directly impact balances. See if creditors will lower rates, especially on credit cards. Even a few percentage points can save money.

Avoid account closure – Don’t voluntarily close accounts as the closed date and reduced credit amount can negatively affect your score. Keep accounts open but unused if needed.

Get promises in writing – Any negotiated agreement or offer from a creditor should be added to your account notes and/or provided in writing. This protects you and ensures the changes are made.

With patience and persistence, you can work with creditors to remove negative marks, reduce interest rates, and demonstrate responsible payment patterns. Just be sure to follow through on any agreement so you benefit from improved credit access and terms.

FITNESS INSPIRATION OF THE DAY – JORGE DAREK