Repair bad credit without external help

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Credit Card Applications » Research » Guides » Building Credit History » Repair bad credit without external help

Repair bad credit without external help


Updated: December 26, 2012

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

If you think repairing bad credit is a herculean task which you cannot do by yourself, think again! It is not necessary to get help from external agencies to get your financial life right. You can bring about the change by just taking a methodical approach and curtailing your spending habits. You can also save the money that you would have had to pay the debt management agency if you would have gotten their assistance. This money can help you to pay off some of your existing debts and help your credit score to improve.

Get your latest credit report

The first step towards repairing bad credit is to get your latest credit report from one of the credit bureaus. This report contains all the information that you need before you set out to fix your credit. You will get an idea of which aspect is causing your credit score to be low and where to start. Check to see if there is any incorrect information on your credit report. If you find any error in your credit report, you can file a complaint and get it resolved.

Pay off accounts which are long due

A large part of your credit score is dependent on how regularly you make your payments. Irrespective of whether it is your credit card bills, loans or utility bills, everything has to be paid in time in order to stay in the good standings. If there are bills that you have not paid for a long time, you need to pay them off and bring yourself up-to-date on the payments. This will serve as the first step towards credit repair. If you are not able to pay the entire amount, you can call the lender or the debt collector and negotiate on new payment terms so you can make timely payments.

Clear off dues on maxed out credit cards

Did you know that maxed out credit cards are the main reason why credit score drops? If you have credit cards in your wallet that have been maxed out, it is time you start making payments on the card to bring your balance out of arrays. As the outstanding dues on your credit cards go down, your credit score goes up. Also, use your credit card only in cases of dire emergency. Do not use the card to make purchases that can wait. Simple steps like this can help you fix bad credit very early.

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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