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Credit history is the determining factor whether one will be granted a loan or a credit card or not. Credit history is a record of all the mortgages or loans you have taken in the past. This will also show how the repayment had been managed. A credit turns out bad when payments weren't made or when they are made late. Another factor that makes a credit history bad is the declaration of bankruptcy.
Not all people are really aware of the consequences of having a bad credit history not until their loan application had been declined. One may have a good job or a big house at present but what lenders usually look at is the past pattern.
A bad credit history can lead to non-approval of loans, mortgages or credit card application. Loan approvals can still be approved but with high interest that could really be a big burden on your pocket. Remember that you are a credit risk so lenders would like to make sure that when you default, they at least won't be losing that much. Aside from loan or credit card application, one can also have a hard time finding a house to rent with a bad credit card.
It could be very frustrating when you can`t take the loan you really needed but this should not burden you for a lifetime for there are some ways on how a bad credit card could be fixed. Just be warned though by some companies that says they can fix your credit in just a snap of a finger. This is a total lie. The fix will take few years and for now, the best thing you have to do is be patient and do all things necessary legitimately.
When, upon checking your credit report you've found some errors, this should be reported as soon as possible. These errors might be hurting your credit without your knowledge. There might be some fraud so reporting it immediately could prevent greater damages. Also, do a religious checking of your credit report. It won't hurt you doing it.
When your payables have piled up, start paying off with the one with the highest interest. This might not be the easiest way in fixing your history but it is the most effective one.
When you find it hard to repay several creditors, contacting a non-profit credit organization is the best you can do. They can help you consolidate your debts so repayment will be lighter for you. Make sure you approach an organization which won't make your case worse and would take advantage of your situation.
But above all, start teaching yourself to be a good spender. Debts root from mismanagement of our finances so be more careful next time.