Effective tips to stay away from 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 » Effective tips to stay away from bad credit history

Effective tips to stay away from bad credit history


Updated: December 26, 2012

By
Add to Favorites:

A bad credit history can hamper ones ability to function normally in daily life. And it can happen to anybody given the unpredictability of today`s financial institutions on which we have put our faith and belief along with our hard earned money. But not all is lost if you end up with a bad credit history. You can always work harder to get yourself out of the situation that you find yourself in.

The first thing to do is to find out what your credit record says. You might be diligent with your finances and plan your every move. But you still need to check your credit record every year. Apply for a copy of your credit record with one of the credit bureaus. They will provide it to your free of charge. You are eligible for one credit report per year from each one of the credit bureaus. But before we go further, let us first understand what is meant by a credit record.

A credit record is a record of all your financial transactions over the past eight years. It will list all the outstanding loans, your debts and credits and also your open credit accounts. It will also provide a credit score. A credit score is a score that is given to you by the credit bureaus. This score is based on a number of factors which are weighted according to importance. But basically it depends on the debt to credit ratio, the lower the debt to credit ratio, the better for your score.

The first thing to do to avoid a bad credit history is to reduce your outstanding debt. Always ensure that you do not borrow more than thirty percent of the credit limit on your credit card. If you do so, you will end up being branded as a compulsive borrower. Also make sure that you pay up all your outstanding debts by the end of the month. If not, you will end up paying interest on it and also it will look bad on your credit report.

All in all you need to be more financially wise. You will first have to start spending within your means. Always save some amount of money for a rainy day no matter how much you earn. This will go a long way in securing your future financially. And try not to get carried away by numerous reward that are offered by credit card companies.

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 2016

By Herbert Moore, Posted: November 23, 2016

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

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