Different ways of getting out of bad credit history

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Credit Card Applications » Research » Guides » Building Credit History » Different ways of getting out of bad credit history

Different ways of getting out of bad credit history


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

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.

Dust up an old credit card

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.

Start paying at least minimum payments before the due date

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.

Revisit your credit report

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.

Try to reduce your outstanding balance

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.

Don't switch cards or seek new credit cards

Seeking new credit will only worsen your credit rating. Therefore you need to avoid it as much as possible.

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.
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