Inflicting damage to a credit score is not a good thing. In addition to being unable to be approved for other financing such as home or car purchases, a bad credit report could lead to being denied for a job. Insurance policy premiums might skyrocket once the underwriter discovers horrible scores on a report. For improving your credit score we suggest a consulting season with a professional at Dr Credit.
Granted, high credit card balances are going to drive down a credit score. Paying down the high balances improve a credit score within 30 days.
Debt settlements, bankruptcies, and defaults impact a credit score for years. Until the time comes that these items fall off a credit score, the score is going to be extremely low.
Before doing anything rash with outstanding or overdue credit card debt, it is best to try and work something out directly with the company. Calling up the general toll-free number and speaking to the first line of contact customer care representative might not be enough. Asking to speak with a manager or someone in a department that specializes in debt collection is probably going to be the better option. Such a person is going to have more decision making power, and could help work out a more amicable plan for all involved.
For those who have fallen behind on their credit card payments, making sensible requests of the collections department is advisable. A call to the collections department to request a brief suspension of monthly payments or a lowering of the monthly minimum amount is worth the effort. Writing a short letter requesting hardship assistance would be equally advisable. As long as the client is trying to work with the credit card company, the credit card company is likely to be open to helping. No guarantees exist on how the credit card company will react. At least by making contact with acompany representative, some progress may end up being made.
Simply not paying anything at the time the bill is due is a bad strategy. Being irresponsible makes it harder for the company to want to work with a debtor. Yet, some choose to duck their responsibilities with the hopes their obligations go away. Things never work out that way.
Be proactive when handling debt-related problems. Doing so increases the chances of getting things done.