What to do if Your Credit Score Tanks

It doesn’t matter what you have done in the past, you never know what will happen to your credit score in the future. Even if you keep a close eye on every move you make, there is always the chance that your score could tank.

Remember this: it only takes one mix-up to ding your credit score. At that point, you may find yourself wondering what went wrong.

Rather than get down on yourself, rather than give up and declare that there is nothing else you can do, take the following steps:

1. Verify what went wrong. It is imperative to know what is affecting your credit score, as well as whether or not it is accurate. Errors have happened in the past and will occur again in the future. If you pinpoint an error on your credit score, it is time to take immediate action.

2. Ask for Help

If there was no error, if you are responsible for your credit score blunder, don’t shy away from contacting the creditor to see if they can help. For example, some debt collection agencies won’t report your account past due if you agree to and follow through with a payment plan. It’s worth asking, right?

3. Stay on Track

You may find there is nothing you can do to remedy the situation. If you have tried everything and nothing has worked, it’s time to move on. You may be disappointed, but your credit score won’t be down in the dumps forever.

Implement a plan that will help you avoid similar problems in the future. Over time, any negative information will become less powerful, especially if you are doing everything else the right way.

Let’s hope your credit score never tanks. If it does, taking some basic steps can put you in a better place moving forward.