How To Improve Bad Credit History

Introduction

Is bad credit history stressing you out and giving you nightmares? It will not do any good to give up and despair, so act now to make the situation better. This article will list a few tips on how to improve bad credit history.

Step 1

First, take control of the situation. To better a bad credit history, you need to know what exactly you are up against. Get a copy of your credit reports, and then sit down and spend time on working out which ones are fine and which ones could do with your help.

Talking to your creditors, though it may seem like the last thing you would want to do with a bad credit history, may help you. If you're having trouble, talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet.

Step 2

Sometimes, errors in credit reports can lead to bad credit history. You have the right, in such a case, to let the credit bureau or the creditor who listed your account know of the error. Do not take errors lightly, as they can affect your credit score in a big way.

Don't use your credit card is you want to help amend your bad credit history. You should use cash for purchases instead, and even better would be to avoid these purchases. The more you spend, the worse effect it will have on your credit score. Similarly, lowering your purchases helps improve your credit score and better bad credit history.

Step 3

Pay off a debt. This will ease a burden off your credit score if it is getting you into trouble. If you do not have the money, you can think of selling off some of your belongings to pay the debt. This may seem like an extreme step, but you need to make sacrifices to improve bad credit history.

Step 4

Clear past payments. These make up about a third of your credit score and are a major contributor towards bad credit history. If you can, pay what is on your credit card as soon as possible, and keep a track of missed payments by getting in touch with your credit card issuer.

This might just seem like common sense, but avoid applying for new credit cards. This is because credit enquiries will only hurt an already bad credit history. So, no new credit cards should be even dreamt of while you are in credit repair mode.

Step 5

If you are overwhelmed and baffled by your bad credit history, look for professional help. You can locate a credit counselling agency through the National Foundation for Credit Counselling. Your credit card billing statements now include the number to credit counselling agencies that can help you.

Tips

Be patient while things are sorted out, as a bad credit history won't be turned around in a day. Continue to work on your score and credit history and you will surely see improvements over the months.

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