Steps that you can take to mitigate from the bad credit history situation
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 » Steps that you can take to mitigate from the bad credit history situation

Steps that you can take to mitigate from the bad credit history situation


Updated: December 26, 2012

By
Add to Favorites:
In times like this, when the entire global financial empire is reeling from an economic disaster, it can be very difficult for people to maintain a credible financial history. Long term investors who have been managing their finances diligently, will be in for a shock when they realize they`ve lost the hard earned money they invested to companies no longer in existence. However, all is not lost. You can still salvage the situation if you take the right steps as fast as possible. We shall go over a few steps that you can take that will help you sort out the problem as fast as possible. Firstly, you need to review your credit score. You can apply for a credit report with one of the credit reporting bureaus, and find out your score for free. Only when you see your score will you know how bad the situation actually is. A high score is very much necessary for any financial move that you intend to make. You can get up to three free score reports from the credit bureaus every year. And you can also enroll yourself into a credit reporting web portal that will give you anytime access to your score if you make an annual payment. Secondly, you will have to clear all your outstanding debt. Clearing debt is the first move that you need to make to decisively solve the problem. You can start by finding avenues that can help you clear the loans. Try getting a debt consolidation loan from experts who specialize in the same. These individuals specialize in giving out loans to people who have a low credit score for very low interest rates. If you have several outstanding credit accounts, you will have a big problem in following all of them and making minimum payments in time. But if you manage to consolidate all those loans into one single conventional long term loan, you can easily pay it off at lower interest rates. And if any of your loans are approaching default, it is better to negotiate and settle for a smaller amount than letting that mark on your record. Thirdly, you have to change your lifestyle. The very fact that you have arrived at the point you have reached, is because you have spent more than you earn. If you manage your spending such that it does not exceed your income, you need not rely on credit. Having a credit card must be in order to ease your day-to-day activities; it must not be relied upon as a necessity. It is only when you start thinking of it as a necessity that you will put yourself in deep trouble, as you will then have to start thinking up ways to pay back the money by the end of the grace period. Taking these small steps will go a long way in ensuring that you have a good credit history.

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

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

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