Ways to fix a bad credit history
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Credit Card Applications » Research » Guides » Building Credit History » Ways to fix a bad credit history

Ways to fix a bad credit history

Updated: December 26, 2012

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There are times when you can end up with a bad credit history even without meaning to have one in the first place. Actually, no one would want a bad credit history but some people will expect it given their lifestyle and habits. But if you are amongst those who are always diligent of their expenditure and yet end up in debt, then you might be in a real fix given that you did not anticipate your situation. But do not fret and lose your calm over this. If you panic, you will just end up complicating the situation even more. There are a lot of ways to set things right, you just need to know what to do. We shall discuss a few of the steps that you need to take once you get into such a financial turmoil. The first thing to do is to pay your bills on time. Check all your credit accounts and make sure that none of them have outstanding balances that are due in the near future. If there is such an account, make sure that you pay it off immediately. If not, start paying off the other cards which have impending due dates coming up. If you allow bills to pile up, you will end up with a huge debt that you will have to clear out at the end of the due date. And you will have no where to go to get the amount that you would owe the creditor. Keep the number of credit cards that you own to a minimum. The more the number of cards, the tougher it will become for you to manage your repayments for each account. And also obviously, the number of debt causing sources becomes more when you own more cards. When you have a lot of credit cards, you will end up paying more in terms of admin fees, maintenance fees and default or delayed payment fees if you are late in paying your dues. Always pay your loans on time. This is one of the main causes for having a bad credit history. If you have taken a lot of loans, you will again face the problem of having to keep track of each and every one of them. And also you would be paying a lot in terms of interest on each of the loans. Taking a loan to buy an asset which is going to have a greater rate of return than the interest rate that you are paying is a good deal, but if you are taking a loan to buy an asset which is only going to cost you money to maintain like a car, then it is not a sound financial decision. You can do such deals only if it is a real necessity. There have been many situations when people end up missing payments on their loans and hence end up being branded with a bad credit score by the credit bureaus.

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