Because you ve settled with your former creditor for an amount less than what you actually owe them, the creditor eventually reports the remaining balance which you weren t able to pay, to the credit reporting agencies, and this will get noted in your credit report as a deficiency balance . If you have debts with former creditors, make sure that you work out a full settlement with them, and guarantee that what s accomplished between you and your creditor does not get reported elsewhere. Once you see any errors, dispute those figures, and have them corrected or removed within thirty days. While your creditors may look like heartless individuals, the truth is that they are not your enemies. Creditors are in business because they earn a profit from their lending services, and if you don t pay your debts, the creditor will also feel the pinch, and his bottom line gets hurt as well. The Five Basic Credit Card Elements There are five basic elements which are taken into account when determining a person s credit score. These include Payment History, Amounts Owed, Length of Credit History, New Credit, and Types Of Credit Used. The basic elements can offer a lot of insight on how to improve your credit score. If you only charge your card for the items that you can afford to pay, then you won't need to wrangle with any future debt problems By paying your credit card's balance every month, this would indicate that you're capable of paying your bills, and will send a positive signal to most creditors and lenders. Put Your Other Creditors On Hold If you re in a financial crisis, it would help if you call some of your creditors, and negotiate If you may be able to put on hold some of your payments. Under the right circumstances, it would be better if you ask for permission, instead of asking for forgiveness from your creditors, since these individuals can actually punish you with late charges and black eyes on your credit score. 5 Ways To Repair Your Credit Card Debt A credit card is a small plastic, rectangle-sized card which has a magnetic strip that s connected to a credit account, and allows the owner to buy various goods and services. While owning a credit card offers its benefits, the sad thing is that if you don t use a credit card responsibly, you could face a soaring mountain of debt, which can help to taint, or entirely mangle, your credit score.