Keeping your accounts from going into a collections status is a relatively easy process. If you can't afford to make the full payment due, contact the creditor and try to negotiate an alternative payment schedule. People who get themselves into financial trouble often tend to ignore the problems until they become huge legal problems. Simply by taking a responsible approach, paying what you can and working with your creditors, you can almost always keep your delinquent accounts out of collections, which will protect your credit and save you a fortune.
It's true that your creditors want to be paid in a timely manner. However, most also understand that people sometimes run into financial problems. You'll find that by communicating with your creditors and demonstrating good faith by making at least minimum monthly payments, the creditors will be understanding and try to help keep you from destroying your credit.
The easiest and most straightforward thing you can do to protect your credit report and credit score (or begin repairing it) is simply to pay your bills on time. It's that easy!
Strategy 2: Keep Your Credit Card Balances Low.The fact that you have credit cards impacts your credit score. Likewise, your payment history on those credit card accounts also impacts your score. Another factor that's considered in the calculation of your credit score is your credit card balances. Having a balance that represents 35% or more of your overall available credit limit on each card will actually hurt you, even if you make all of your payments on-time and consistently pay more than the minimum due. If you have a $1,000 credit limit on a credit card, ideally, you want to maintain a balance of less than $350, and make timely monthly payments on the balance that are above the required monthly minimums.
