Different ways of getting out of 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 » Different ways of getting out of bad credit history

Different ways of getting out of bad credit history


Updated: December 26, 2012

By
Add to Favorites:

There are many credit card customers, who during the economic crisis have landed up with bad credit history. There are many disadvantages of having a bad credit history. The interest rates on loans are high, the premiums on insurance are high and the credit cards offered too have interest rates. However, not all is lost for those who have a bad credit history. There are many ways of repairing a bad credit history and some of them are actually simple and worth trying out.

Dust up an old credit card

Credit card issuers stop reporting your credit history if you don't use an account for long. A good idea would be to dust up an old card and start using it, so that you add some extra credit history to your name. Longer the credit history better will be your credit rating, thus negating the effects of a bad credit history to some extent.

Start paying at least minimum payments before the due date

The more regular you are in your bill payments, the better it is for your credit history. Consistency in bill payments goes a long way in improving your credit rating. You need to talk to your credit card issuer and settle a minimum payment amount to settle the entire debt in a fixed time. This will give you a good idea on what to budget every month. Don't charge your card, unless you will be able to pay off the balances by the time the bill payment date is around. The minimum payment term will also motivate you to make these payments on time to get out of debt.

Revisit your credit report

Revisiting your credit report and trying to find any negatives which have crept up by mistake is a great way of getting an extra few points on your FICO score. A lot of times, you are in a fight with the credit card issuer and by the time you have resolved it, you might end up missing your bill payment date. All these occurrences can be removed from your credit report once you resolve them with the card issuer.

Try to reduce your outstanding balance

The closer the outstanding balance to the credit limit, worse will be your credit rating. So even if it takes not to charge the card at all, you should do it, to bring the outstanding balance as much as possible.

Don't switch cards or seek new credit cards

Seeking new credit will only worsen your credit rating. Therefore you need to avoid it as much as possible.

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