Your guide to tackling bad credit effectively

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 » Your guide to tackling bad credit effectively

Your guide to tackling bad credit effectively


Updated: December 26, 2012

A lot of people find that their personal budget is too tight to allow them to make any kind of changes in their financial planning. There are so many bills to pay at once sometimes that things get rather ornery. Especially when it comes to credit card payments, this is one of the reasons why people end up skipping payments and losing out in the long run. Skipping or delaying your payment is never a good idea; it simply invites trouble from your financiers as it tends to skew your credit scores badly. Eventually with additional interest charges and APR rates climbing up you are simply stuck and cannot even pay your way out like you could before. There is a way to cope with bad credit history; it does not have to be the end of your carefully planned financial decisions. You can get out of the situation without things getting worse and adding to your debts. When you want to work your way out of the situation, you will need to start with acquiring a credit report. This is not something that is complicated. You can get a free copy every year if you choose to opt for it. Look over it and see if everything listed is what you have actually purchased and also whether all the records of late payments or extra charges made to your account are correct. You can rebuild a good credit standing eventually, but the first step lies in clarifying that all records are indeed correct. If you find any incorrect entries or wrongly credited amounts, then make sure that you are able to file a statement immediately with the credit bureau regarding that. The lender has to clarify the statement within a month or else wipe it off your credit report. Once you have managed to clarify this part of your credit card statement, next you need to contact a credit counseling agency, preferably a nonprofit one. They will be experts in handling such situations and will be able to provide you with concrete reliable steps as to how you can proceed. At a nominal fee, you can work out with their help, a manageable payment plan to sort the whole mess out. They will be able to work out through discussion with creditors, a payment plan with lowered interest rates that you can really afford to pay. The level of your debt at this point will determine how many years it will take you to re-acquire a good credit score. This means that until then you have to stop spending on your credit cards and keep them locked up or better still chop them up if the temptation is too great. Once you have managed to get out of this financial crisis, resolve to never indulge in the mistakes you made again. You would have learnt enough about what can go wrong and how debt can add up to large and difficult amounts. Live with careful planning when comes to your credit cards and bad credit history will fade into a distant nightmare.

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:

Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

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
How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading