Recently I received a call from one of our clients who had just joined the Program. The call was referred to me by the Client Services Department because the Client wanted to speak with the “Boss” about some credit issues. The gist of our conversation centered around the fact that he had given up on ever getting good credit because of his previous bad credit history. He had been turned down for several car loans, a refinancing of his mortgage and could not even open a new bank account because of a negative report from ChexSystems, the company that reports to banks about a persons checking account history.
Remember, time and good payment habits are the key to restoring your credit.
This is a person who has been “buried” by his credit history. A number of our incoming clients are in this position and that is why they must realize two very important facts – they must care about their credit and they must work at rebuilding their credit. As the client that I spoke with found out the hard way, your credit is one of the most important things you have and like any other important possession you have to be concerned about it and take care of it.
I explained to the Client that his situation, like everyone else that joins the Program, is not hopeless. Time and good credit habits are the cure for bad credit. By recognizing the fact that he had a debt problem and joining the Program I told him that he had already taken the first important step towards restoring his credit. As we settle his outstanding debt the creditors will report a zero balance to the credit agencies. This will immediately improve his credit since all of the accounts he put into the Program will eventually show as paid, settled paid in full or language to that effect. When an account shows a zero balance, even though there are late payments, credit managers tend to overlook the late payment history because the report shows that the person does pay his bills.
My purpose in writing this article is to assure you that as a Client of the Program your credit standing will improve without you having to do anything more than making sure you pay your secured debt, i.e. mortgage payment, car payment, etc. on or before the date it is due, make your monthly payment into the Program on time and do not get into additional debt that you can’t pay. If you do these three things I guarantee that your credit will improve without you doing anything else. Remember, time and good payment habits are the key to restoring your credit.