Fixing the Credit Wreckage of Your Past

Your newly sober and getting your life back on track. Chances are that a lot has come unhinged and that likely includes your credit. Take a deep breath, it’s all fixable, but may just take some time. Living with bad credit in America today is possible, but it's tough. Bad credit makes many things difficult, impossible, or more expensive.

For example, did you know insurance companies often charge a higher interest rate for drivers that have bad credit scores? If you're getting new utilities turned on in your name, the company will check your credit to decide whether you should pay a security deposit. We all know that banks check credit scores before they give you a credit card or a loan. As years go by, the list of companies who check your credit will probably grow instead of shrink.

Why Pursue Credit Repair?

Credit repair is critical to saving money on insurance, loans, and credit cards, but that's not the only reason to repair your credit. A better credit score opens new employment opportunities, even promotions and raises with your current employer. If you dream of starting your own business or just want the security of knowing you can borrow money when you want to, you should repair your credit sooner rather than later. Check out the folks at Credit Solutions for guidance (and a free credit report to get started).

Seven Credit Repair Tips

Keep these credit repair tips in mind as you work toward a better credit score.

1. Salvage what you can. Don’t sacrifice accounts that are in good standing for accounts that are not. Continue making timely payments on all your current accounts.​

2. Spread your disputes over a period of time. If you're disputing several items on your credit report, only put one dispute in each letter and space out your disputes. The credit could become suspicious of too many disputes and consider them frivolous. ​

3. Be careful closing credit cards. Rarely does closing a credit card help your credit score. In fact, closing a credit card is more likely to hurt your credit score, especially when the account has a balance.​

4. Learn what things hurt your credit score. Learn what things have a negative effect on your credit score so you can avoid making these mistakes.​

5. Don't be discouraged by setbacks. Your credit score may drop unexpectedly as you go through credit repair. This doesn't necessarily mean you've done something wrong. Continue adding positive information to your credit report and your credit score will improve over time.​

6. Get consumer credit counseling. If your debts are overwhelming, creditors aren’t willing to work with you, and you can’t seem to come up with a payment plan on your own, consumer credit counseling is an option for getting back on track.​

7. If bankruptcy is inevitable, file sooner rather than later. If filing bankruptcy is the only way you can get back on track, don't waste time on strategies that won't work. Evaluate whether you should file bankruptcy early so you can start the process and begin to rebuild your life.

Safe Haven Recovery is a boutique Florida Treatment Center located in Miami, FL. We specialize in Suboxone Maintenance & Detox, along with, Couples Treatment. Call us today at 866-447-4650.

About the Author

Matthew Koenig is a freelance writer and principal of Last Call Marketing which devotes their efforts to Digital Marketing, SEO and Social Engagement. Concentrated in addiction recovery, Mr. Koenig is based out of South Florida. His sober date is June 10, 2013.

#addictionrecovery #creditrepair