5 steps to undo your bad credit history
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » 5 steps to undo your bad credit history

5 steps to undo your bad credit history


Updated: December 26, 2012

By
Add to Favorites:
In 6 months of inconsistency one can really damage his or her credit. Whether it is through inconsistency in paying the bills or getting late and missing the bill payment dues, you can lower your credit rating and hence bring down your creditworthiness too. If your outstanding bills are way too high to get interests accumulating very quickly and the outstanding gets way too close to the credit limit, your credit rating is likely to be hurt further. However bad your credit history could be, it is never too late to mend and you can always repair it with some commitment. Get all your debt to one card It is easy to miss bill payment deadlines if you have multiple cards and even worse, with varying interest rates. You can never really be sure which one to pay off first and which one the last. Although, balance transfers could hurt your credit history to some extent, they can also help you to prevent your credit history from worsening a lot as the interest rates keep accumulating on each of your cards. To get organized it is always good to have just one debt and always be sure what your outstanding overall debt it. Talk to the credit card company You can talk to the credit card company to set some sort of a payment plan through which you can pay off your outstanding dues slowly over a period of time. This will give you a good idea of how much is your target every month and how much you should spend on your card or save overall in order to make your target easily. In fact you can try debt consolidation where one credit card company takes up all your debt and sets you with a monthly payment plan. Study your monthly credit card reports carefully This will allow you to understand when your income is coming and where your expenditure is going. The monthly expense report will also show you where you could save some money possibly. Every expense cut down will help you clear the outstanding dues even quicker. Do not miss your minimum payments With the recent credit card reforms, credit card companies have to constantly inform the credit card customers how long it would take to pay off the outstanding if they consistently pay the minimum payment due as decided by the credit card issuer. This acts as double motivation, firstly to constantly see the improvement you are making and also to encourage you to pay more than the minimum payment to get the due off your back faster. Pay more than monthly minimum payments You can build a good credit history by consistently paying more than the monthly payment due on your credit card. By doing this over a period of time you can not only salvage your credit history to a great extent but also ensure that your interest rates go back to their original if they were raised in the recent past because of your late payments.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading