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:

Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading
Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading