Effective tips to stay away from bad credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Posted: December 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: December 1, 2017

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

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