Dealing with bad credit history
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 » Dealing with bad credit history

Dealing with bad credit history

Updated: December 26, 2012

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 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