Bad Credit History and How to Get Rid of It


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 » Bad Credit History and How to Get Rid of It

Bad Credit History and How to Get Rid of It

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
There are many people who take their credit score seriously. If you are one of those people who have a bad credit score or a massive outstanding balance on your credit card, you are in for trouble unless you decide to improve upon the credit score right now. Motivation to not let the situation slip through your fingers and crystal clear planning and implementation will keep you in good stead. Why Worry about the Credit History? You need a house mortgage loan. If the credit score you have is 100 points less than that of your colleague's you can easily end up paying 5 - 10% more interest for the same loan, even though both of you are from the same office or have the same earning capability. Why should you choose to pay extra when you can get the same interest rate just by improving your credit score? Go to a credit card company, a hotel booking, an entrepreneurial loan or any other place and you will find that people look at your credit score even before they start talking to you. The lower your credit score, the lower is your creditworthiness and hence less lenders will trust you with their money. Even if they do, you will be slapped with ridiculously high interest rates. How did Credit History go Bad? Credit history is everything that you have done in the past. Your bank accounts, your debts, loans, spending, outstanding balance, the loans defaulted, monthly payments missed, number of accounts held etc. So, if you miss paying the monthly payment once, it reflects poorly upon your credit score. Your score suffers terribly, if you have repeated outstanding balances on your credit report too. If you fall back on mortgage payment, your score suffers further. How to Improve Credit history? Improving credit history doesn't happen overnight. But it can be done with planning and resolve. The first thing to do would be paying back the debt on your credit cards as soon as possible. Some banks offer balance transfer, but if you can manage paying off individually it is better, because balance transfer may lower your credit, unless the terms you get are really good like 0% interest for a whole year, which will help you pay back the credit faster. You should shop as less as possible with the credit cards to ensure your debt comes down gradually. You show consistency with your monthly payments. Apart from these normal things that you should follow sincerely, you can also try to protest for certain charges that have come on your name without your fault. The monthly payment miss because of their mistake or misreporting, the wrong balances or the late update of the credit card reports etc. could all be challenged. There are companies which specialize in that and you can take their help to get as many negative things off your credit card as possible. By doing all this, you are slowly cleaning your credit history.

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: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: February 12, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... 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!