A large part of bad credit stems from not paying back loans on time or missed credit card payments. Making these payments on time is also a great way to build your credit. If you are unable to make your payments on time, try taking these actions to avoid penalties:
Ask for a grace period.
If you are unable to make an upcoming payment, reach out to your credit account provider. Many companies will give you a grace period on your payment that allows you time to collect the funds needed.
Request a lower minimum payment.
If you’re having trouble making your payments every month, call your credit card company or loan provider to see what options they offer. While some may not be willing to assist you, other companies will agree to lower your interest or minimum payment.
If you have federal student loans and are struggling to make payments you may qualify for an income-based repayment plan or deferment or forbearance. To learn more about your options in regards to these, contact your loan servicer.
Coordinate Your Due Dates.
Getting your credit account provider to alter the day your payment is due is easier than either of the previous actions. Having payments stacked on top of each other at the beginning of the month or due days before you get paid can really affect your ability to make those payments. Call and request a simple due date change – most companies will be willing to accommodate you!
Begin Improving Your Credit.
If you avoid missing payments on your loans and credit cards you will be able start improving your credit! Follow these tips for avoid getting a ding on your credit.