How to ensure that bad credit history does not pose a problem

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Credit Card Applications » Research » Guides » Building Credit History » How to ensure that bad credit history does not pose a problem

How to ensure that bad credit history does not pose a problem


Updated: December 26, 2012

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

Nowadays, it is not uncommon for people to end up with bad credit history. Considering that we are only recently beginning to recover from recession, it is not unfamiliar if you ran into debts that you were having a tough time clearing. Not only do you end up spending a lot of money trying to clear these debts, but you might also have a really tough time trying to fix the damage that these missed payments might have caused on your credit history. Luckily, there are ways in which you can still manage with poor credit history and work on improving it.

To begin with, you should only consider holding onto credit cards that can still be considered as profitable even in such extreme economic conditions. In this manner, you won`t simply end up spending more money than you should on repaying credit card bills. This is something that you ought to carefully consider and keep in mind, as many people find it comfortable to hold onto their old cards, which might not really be the best idea when your credit history is not up to the mark.

Next, start prioritizing your debts and repay the ones that you would most likely stand to gain from. Hence, if there is an impending debt that is severely denting your finances, it makes a lot of sense to clear this rather than trying to eliminate debts based on quantity. People tend to think that the fewer debts they have, the better it is. This is not completely true, as debts ought to be cleared based on their timeline. In this way, if there is some debt that you should pay off immediately, you shouldn`t be hesitant in doing so.

Finally, you must remember that bad credit history is not going to be a permanent thing. It does take time to fix it and expecting it to be fixed overnight is just preposterous. If someone or some company claims to help you do so, you can safely assume that this is incorrect. Most people work on their credit history for a year or two before they are able to improve the score in any manner. Hence, you too should be willing to have patience and ensure that you are able to gradually improve the score, even if it does take time to do so.

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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