Steps to fix a bad credit record


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Steps to fix a bad credit record

Steps to fix a bad credit record

Updated: December 26, 2012

In this time of global economic turmoil, anyone can have a bad credit record. Even if you have been diligent with your payments throughout your career, you will suddenly find that you just cannot make the payments due to the fact that your salary has plummeted or you have lost your jobs. Head cuts and wage cuts are the buzz word in human resource circles these days, it`s no longer anything about finding the best minds from the best colleges.

If you are faced with a bad credit situation, there are a number of things you can do. The first step that you need to take is to start becoming current. This is very important because your payment history will make up almost 35% of your credit score. All lenders will want to see a clean payment history with no defaults or late payments.

And secondly, try taking steps to pay off as much debt as possible to your credit card company. The less you owe to the credit card company, the better your financial standings will be. Again, the less debt you have with any institution, the better for your score. You need to remember that no one can give you an exact formula based on which your credit score is calculated, but if you take some steps to remain clean you need not worry.

Thirdly, if you have any accounts in collection you need to settle as soon as possible. This will affect your score up to 40%. The best way to settle is to tell them about your situation and ask whether you can pay anywhere between ten to forty percent of the amount owed. If you explain that this is all you can pay maybe they will remove the faulty item from your record, helping to improve your credit score. They will in all likelihood work with you because they do not want to spend money to send your account to collections.

Lastly, consider hiring a credit repair company that specializes in repairing bad reports from your record. It could either be faulty or true, but in any case you need to handle it swiftly and potently. The longer it stays on your record, the more credit issues you will have. Try to get a debt consolidation loans to refinance your loans and get one single loan to deal with.

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: Spring 2018 – Expert Choice

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Posted: February 12, 2018

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ... 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: February 10, 2018

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
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading