Dealing with 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 » Dealing with bad credit history

Dealing with bad credit history


Updated: December 26, 2012

By
Add to Favorites:
Credit card issues are something a large part of the American population faces. When dealing with credit reports and poor credit scores people often feel like they are in a dead end. Their options for loans are limited and getting their debts sorted out seems like an unending crisis. Especially with the recent problems and recession which resulted in loss of jobs for many, a lot of people have filed for bankruptcy. This is not the solution and it is possible to fix your credit by planning and patience. The first step in dealing with bad credit is of course to find out what you owe and to whom. In most cases, if a loan has been denied or credit has not been granted it is possible to get a free credit report stating why from the agency. In case of any amounts which are unaccounted for, it is possible to question it and settle the dispute. You need not take up a burden for which you are not accountable. Dig out the copies of your bills and the documentation and send all the evidence when you send the dispute form. Once the information has been correctly updated, a new copy of the report can be requested for from the credit bureaus. The solution is to settle the debt. You cannot walk away from the money you owe. Therefore you need to plan how to go about the process of paying. Call your creditors and work out a plan of payment. Negotiate with them on the payment and you may be able to work out a due date that gives you more time to gather your finances or even reduce monthly payments so as to not be reported as a defaulter. Firstly decide not to charge any more purchases to your existing cards. If you have different cards with different balances and interest rates, do a research and transfer all the balance to a single card. It is easier to pay for one single card than remember and sort out a number of different due dates and amounts. Be sure that you get records of agreements made in writing that your credit will be written as paid off once you do so and an adverse report will not be filed. Once that is done, or if due to a previous balance transfer it is not possible work on the card with the highest amount due or the highest interest rate. See what resources you can gather from your salary and also liquidate your assets if you have to and end the debts. Once you do that you are free to move on to a new phase in your life as a debt free man. The next step is to close your credit card accounts. Do not go cut your cards and think the deal is over. It does not result in closure. It is not wise to close all the credit card accounts at once, it can still damage your FICO scores or credit scores. Work out a strategy by which the debit to credit ratio is 50%.

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

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading