Losing a job does not mean you would not have a chance to improve your credit rating. Do not waste time crying over misfortunes. It is really challenging to pay off bills especially if you have just been unemployed. Good for you if you have enough savings to get you through the dry spell and buy you more time for your credits.

Here are some tips on how to maintain a good rating in spite of unemployment.

Start off by seeking the help of a credit counselor regarding credit report improvements. If there are derogatory items on the report, write a letter to the credit report agencies to address the derogatory statements. Once done with this, apply for credit cards that allow transferring credit into their card.

If your application for credit card is approved, transfer the balance from your other credit cards to this card. Do not make new purchases with this new credit card. Instead, reduce the outstanding balance on this new credit card. If you cannot have a new credit card, ask your current card companies to reduce your interest rate.

Do what you can to negotiate with credit companies to lower your card’s interest rate. If you just lost a source of income, tell them that it will now become difficult to make prompt payments. Ask for help on how to avoid defaulting on loans and how to maintain good credit standing. When the credit card company is giving you a rough time, keep convincing them until they concede so that you can still retain your current rating.

Not paying debt means you will lose a good rating. However, if you have no choice, but to stop paying some of your debts, then stop paying the credit cards, but continue paying your loans. Finance companies have a legal recourse when it comes to mortgages and bank loans. These entities can legally take away properties or can file a case against you.

If your account is transferred to a collection agency, know some things to combat their harassment. Let them know that you do not know them and that you will need a letter as a proof that you indeed owe them. Collection agencies do not have a legal standing so they can not sue you to enforce payment.

Losing work should not mean that you will neglect improving your credit standing. Talk to your creditors if they can reduce your debt. If they will not agree, then you have no choice but to make your payments.

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