Bad credit history and ideas for prevention

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 » Bad credit history and ideas for prevention

Bad credit history and ideas for prevention


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Having a bad credit history is not a very desirable financial state, but sometimes, it cannot be avoided. Economic recessions, financial emergencies and many other reasons contribute equally towards bad credit scores. Here are a few common causes and tips on how to avoid them: Credit card irregularities Sometimes not using the credit card with discipline may cause credit scores to go low. These can be corrected with some minor efforts while using the card. • Paying the bills: When there are delays in payment of bills, or when payments are missed, credit scores will automatically go down. Even if the bills are paid in partial, the credit scores can drop. But it is always a better idea to pay the minimum amount due, in case the bill amount cannot be paid completely. • Wrong entries: Sometimes, credit card bills can be erroneous with double entries, wrong entries, or entries for cancelled purchases. These may add up to the total amount outstanding, which in turn can further harm the credit scores. The outstanding balance should always be less than the total available credit limit, or it will cause the credit scores fall. One way to eliminate this problem is to go through the monthly bills regularly, and verify every purchase made. • New credit Cards: Applying continuously for new credit cards will decrease the scores. If applications are rejected, then credit scores will decrease. A denied application makes up a percentage of your total score. Tips to avoid low Credit scores Although it is very easy to land in bad credit, with some effort the situation can be completely avoided. Here are some tips that can help in avoiding the bad credit history situation: • Planning credit card purchases in advance, helps to make bills are paid in full. While planning it is always a good idea to include extra room in the budget in case one or two unplanned purchases are needed. • Credit reports are a way to determine if the scores are in the right direction. Reading them at least once a year and correcting the mistakes can save the day • Auto scheduling of payments can ensure that bills are paid on time.

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: Summer 2018 – Expert’s Choice

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

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. 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!