7 credit card habits to recover from bad credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » 7 credit card habits to recover from bad credit history

7 credit card habits to recover from bad credit history


Updated: December 26, 2012

Bad credit history, in the case of most people, is of their own making. The credit score goes down and the history is tarnished primarily because of over expenditure and inconsistency in payments. Given the importance of credit history to every individual’s chances of getting cheap insurance, loans and better credit card terms, it is worth the extra effort. Here are 7 credit card tips which can help you recover from bad credit history and raise your credit rating. Pay the bills before the due date If you have the money, and your bill is with you, make the payment as soon as possible. Consistent bill payments over at least 6 months, is considered to be a positive sign and will significantly enhance your credit score. You also avoid the risk of ending up cashless just before the due date. Spend only if you can pay Credit card was created more for convenience than for giving out loans. That is why the interest rates are so high compared to personal loans. As a result, you should spend on your credit card, only when you are sure, you can repay the card debt at the end of the monthly cycle. In other words, swipe the card, only if you have cash in your bank. When in doubt, it is good to refrain. Preparing and preventing is way better than repairing and repenting. Check your expense statements thoroughly By doing so, you will able to spot fraud charges as well as dubious expenses that you haven’t made with your card. Avoiding them reduces your bill amount and more importantly keeps you aware of card frauds, if they are happening. Don’t shop for rewards Rewards shouldn’t be an incentive for shopping. The simple rule of thumb is to purchase only those items which you would have purchased even without rewards. When you shop for rewards, rest assured that you will spend more than what you are in line to gain. Don’t incur penalties Each card has its own set of penalties, including late fee, over draft fee and cash withdrawal feel, to name a few. Incurring these penalties, adds to the bill amount that you have to pay at the end of the month. Such events also land a body blow on your chances to repair your credit history. Don’t use credit card as an ATM card Although a lot of credit cards, allow you to withdraw cash from a network of ATMs, avoid doing so, unless in an emergency. If you fail to repay the debt, you pay a high interest on the cash and you will also negate your positive efforts to repair the bad credit history. Don’t close old credit card accounts The longevity of your card account and history, adds valuable points to your credit score. Even if you are not using a credit card, don’t close an account which has a long history. You can always cut up the credit card itself to be on the safe side.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading
How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading