We are all guilty of making less than perfect decisions every once in awhile, and sometimes those decisions are financial decisions that affect our future. Getting flagged (or marked) by the early warning system (EWS) of one of your lenders, either through a loan or credit card, you’ve probably made a less than perfect decision regarding your spending and paying habits.
If you know you have been flagged or marked by one of these Early Warning Systems, the question of how you got there isn’t of the utmost importance to you anymore.
The question that everyone asks, and is of the utmost importance is: What do you do now? You are going to be best served by trying to get your spending and borrowing in the best standing possible and as soon as possible.
The difficulty with the Early Warning Systems of banking institutions is that they are inherently secretive because they are trying to identify people and their habits in an inconspicuous fashion. They’re not out to get you, but banks and credit lenders want to know what your regular borrowing, spending, and payment habits are. Once blacklisted, it is difficult to get off of their list because it’s hard to know exactly what you did to get yourself on it in the first place.
The first thing you should do, if you’ve been marked by an EWS, is to be certain that all of your payments are up to date. This is one of the first things to trigger an EWS, and one of the first things that can remove you from the system, so make sure you are up to date with all of your payments. The best way to look at it is that lending institutions want to see you on your best behavior. That means that early payments or payments that are larger than the minimum payment will help put you in good standing.
Another good thing to do, no matter how painful, is to stop using your credit card. No matter where you are at in terms of your credit limit, it is helpful to just stop using your card if you have been marked or flagged. Cut it up if you want to, shred it, hide it away somewhere, or just keep it in the wallet, but discontinue using it to prove to your lending agency that you are not fully dependent on your credit card… and that you can survive without it.
Remember: try to be on your best spending behavior. Pay more than the minimum before you have to, and stop adding to your balance, and you are on your way to being in better shape. The EWS is there for a purpose, and it is admittedly not the best situation if you are flagged by it, but if you do the right thing for enough time, you will regain the respect of your lending institution, and other creditors that may have flagged you.