Bad credit history and ideas for prevention
Advertising Disclosure is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Bad credit history and ideas for prevention

Bad credit history and ideas for prevention

Updated: December 26, 2012

Add to Favorites:
Having a bad credit history is not a very desirable financial state, but sometimes, it cannot be avoided. Economic recessions, financial emergencies and many other reasons contribute equally towards bad credit scores. Here are a few common causes and tips on how to avoid them: Credit card irregularities Sometimes not using the credit card with discipline may cause credit scores to go low. These can be corrected with some minor efforts while using the card. • Paying the bills: When there are delays in payment of bills, or when payments are missed, credit scores will automatically go down. Even if the bills are paid in partial, the credit scores can drop. But it is always a better idea to pay the minimum amount due, in case the bill amount cannot be paid completely. • Wrong entries: Sometimes, credit card bills can be erroneous with double entries, wrong entries, or entries for cancelled purchases. These may add up to the total amount outstanding, which in turn can further harm the credit scores. The outstanding balance should always be less than the total available credit limit, or it will cause the credit scores fall. One way to eliminate this problem is to go through the monthly bills regularly, and verify every purchase made. • New credit Cards: Applying continuously for new credit cards will decrease the scores. If applications are rejected, then credit scores will decrease. A denied application makes up a percentage of your total score. Tips to avoid low Credit scores Although it is very easy to land in bad credit, with some effort the situation can be completely avoided. Here are some tips that can help in avoiding the bad credit history situation: • Planning credit card purchases in advance, helps to make bills are paid in full. While planning it is always a good idea to include extra room in the budget in case one or two unplanned purchases are needed. • Credit reports are a way to determine if the scores are in the right direction. Reading them at least once a year and correcting the mistakes can save the day • Auto scheduling of payments can ensure that bills are paid on time.

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

Related Research:

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 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

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading