Using credit cards to undo 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 » Using credit cards to undo bad credit history

Using credit cards to undo bad credit history


Updated: December 26, 2012

Credit cards could sometimes lead to bad spending habits causing people to ruin their credit history and lower their creditworthiness. However, credit cards can be used as instruments to help you manage our finances better too. Here are some strategies to use credit cards to undo bad credit history. Make Bill Payments on Time If your credit history is bad, using your credit through the credit card is the only way you can repair it in the future. However, you also need to pay back whatever you have charged on the card. If you can use your credit card for all reasonable expenditure and then pay back the dues before the payment deadline is due, over a period of time, your credit rating will greatly improve. Most importantly, consistent bill payments will make you more credit worthy, and more credit card issuers would be willing to offer good deals to you. Use the monthly expenditure report Almost all credit card issuers send credit card customers detailed expenditure reports for the month. These reports could be used effectively to look for expenditure amounts that could be avoided. Finances that were wasted in extravagance can be instantaneously spotted, which means you will always be aware of where some of your hard earned money disappears and where you could pull back some savings. The lower the extravagance, the lower your outstanding balances and therefore the better your credit history will be. Auto debited bill payments This is one of the biggest benefits of owning a credit card. If your bills are all paid on time, it will greatly improve your credit history. This doesn't just involve your credit card bills but also bills for your utilities like electricity, water, phone or internet. Setting auto debit payments from your credit cards for all these bills ensures that you never miss a single bill payment deadline. This way, over a period of time, you can greatly improve your credit history and credit rating. This is because credit history depends on the consistency with which bill payments are made. Fear of interests Fear of credit card interests and taking it as a challenge not to pay additional interests on credit cards, could help you avoiding big expenses. This is how even credit limits can be used properly. You can set targets, so that you never really spend more than what you can afford. That way, your outstanding dues remain low and your monthly expenditure remains under control. Plastic is always better than cash Spending with your cash will never improve your credit history, because there is no trail left for it. You will find it difficult to get personal loans or good premium rates for insurance for medical expenses or vehicles. Plastic will not only leave a trail, thereby adding to your credit every time you spend, it also helps you keep track of what you have spent. It is often easier to know where and how you have spent money with a card, than trying to figure out where all that cash went out from your pocket.

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
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!