Closing - Keep Learning and Keep Earning

Lesson #5.3 When Credit Goes Bad, Here’s How To Fix It

It’s easy to think that good credit is something that just happens to you. However, the truth is that your credit is something that you have to work for.

Unfortunately, sometimes things happen that can put a ding in your credit score

So if you’re minding your own business, living your best life, when suddenly you get a call from a collection agency causing you to burst into a cold sweat, and your heart to sink into your stomach – know that you can do this.

Here’s how to fix your credit and get your life back on track.

First things first: don’t panic.

It might feel like the world is ending, but it’s not. You can fix your credit—it just takes time, patience, and a little bit of know-how. The first step is to understand what’s happened. Collection agencies are calling because you have unpaid debt that has gone to collections. This could be from a credit card, medical bills, or even utility bills. Whatever the case may be, you need to take care of it.

The next step is to come up with a plan. You can’t just ignore your debt and hope it goes away—that will only make things worse

I created this video to document some of my own activities to improve my score that didn’t cost me anything.

Finally, don’t be afraid to negotiate. If you’re honest with the collection agency about your financial situation, they may be willing to work with you on a payment plan that works for both of you. Remember: they want their money back just as much as you want to pay it back. So don’t be afraid to ask for what you need.

If you find yourself in the unlucky position of having bad credit, don’t despair—there are steps you can take to fix it. So take a deep breath and remember: you can do this!