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It is easy to fall prey to bad credit, the challenge lies in accepting the mistakes you have made and ensure you change your spending habits to repair the damage you have done. Most people think repairing bad credit is a herculean task. While the process of fixing it is definitely not rocket science, it does take a lot of consistent effort from your side over a long span of time to ensure you push up your credit scores. Let us take a look at some of the simplest steps you can take to repair your bad credit history.
If you have a bad credit history, chances are you will be left without a credit card at your disposal. The first step is to ensure you pick up the right credit card since this is the one that can help you show your financial responsibility and better your credit history. Refrain from opting for credit cards that have high interest rates and annual fees associated to it since it can only lead you to more debt. Prepaid cards should not be considered since timely repayment of your dues on these cards will not be reported to the credit bureaus, thus not helping you fix your bad credit history.
You might not be able to get the credit card from large banks, but you will surely find some lenders who will still be willing to take the risk and give you a card. It is always better to opt for secured credit cards or credit cards from department stores since their terms and conditions for people with bad credit will be more favorable than the rest. Using this card wisely and making your payments on time is the first step towards bettering your credit scores.
Change your perception towards credit. Remember that the money you spend for purchases using your credit card is always something you owe to the bank. Hence, spend only the amount that you are sure you can repay by the end of each month. You can spend up to 30 percent of the your total credit limit on your card without it being reported to the bureaus; however, every dollar that you spend above this limit can be hazardous as it gets reflected on your credit history. Make your credit card and utility bill payments on time and do not skip even a single payment.
These simple steps taken at the earliest can assure you of a better credit history in a short span of time.