There are many credit card customers, who during the economic crisis have landed up with bad credit history. There are many disadvantages of having a bad credit history. The interest rates on loans are high, the premiums on insurance are high and the credit cards offered too have interest rates. However, not all is lost for those who have a bad credit history. There are many ways of repairing a bad credit history and some of them are actually simple and worth trying out.
Credit card issuers stop reporting your credit history if you don't use an account for long. A good idea would be to dust up an old card and start using it, so that you add some extra credit history to your name. Longer the credit history better will be your credit rating, thus negating the effects of a bad credit history to some extent.
The more regular you are in your bill payments, the better it is for your credit history. Consistency in bill payments goes a long way in improving your credit rating. You need to talk to your credit card issuer and settle a minimum payment amount to settle the entire debt in a fixed time. This will give you a good idea on what to budget every month. Don't charge your card, unless you will be able to pay off the balances by the time the bill payment date is around. The minimum payment term will also motivate you to make these payments on time to get out of debt.
Revisiting your credit report and trying to find any negatives which have crept up by mistake is a great way of getting an extra few points on your FICO score. A lot of times, you are in a fight with the credit card issuer and by the time you have resolved it, you might end up missing your bill payment date. All these occurrences can be removed from your credit report once you resolve them with the card issuer.
The closer the outstanding balance to the credit limit, worse will be your credit rating. So even if it takes not to charge the card at all, you should do it, to bring the outstanding balance as much as possible.
Seeking new credit will only worsen your credit rating. Therefore you need to avoid it as much as possible.