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Bad credit can turn out to a nightmare with the exorbitant interests that one needs to pay. It is definitely a black mark in one`s financial report. Also it makes getting fresh loans very difficult. Keeping all these in mind it only makes sense that one work towards improving their credit history in order to improve their financial reputation. Here are a few simple steps to help you repair your bad credit history.
Step one:
The first and foremost thing that you need to do is manage your credit cards and if possible get them consolidated. Next you need to stop using them. The more you use them the deeper you get pulled into the credit mire and further worsen your credit history.
Step two:
Even as you go about closing your credit cards, be careful and study them before you do so. In some cases it may be more beneficial to hold on to some of hem rather than close all of them.
Step three:
Make it a point to make all your payments in time. Each time you make a default it hits your credit rating.
Step four:
Look no further for fresh loans. The more loans you have deeper you get into credit, which in turn lowers your credit ratings. Stay away from loans and make prompt payment for those that you already have.
Step five:
Get hold of your credit report and study it carefully. In fact this should be done on a regular basis to keep a tab on any discrepancies that might creep into your credit standings. If you happen to notice any kind of discrepancy go about setting it right, in order to maintain your credit accurately. To keep tab on your credit report you can get them from the national credit agencies.
Step six:
Work towards clearing your debts. As and when you start repaying your debts it will start affecting your credit history positively. If the need be sell personal belongings in order to raise cash to help in debt repayment.
Step seven:
When paying your debts be sure to clear those with a high interest rate first so that you don`t end up paying unnecessary interest.
Step eight:
Get in touch with your creditors. Many of them may be able to help you through this difficult period with the help of their hardship plans. These plans will help you overcome your bad credit.
Step nine:
If you are not too sure about the way you are handling your credit, you can always opt for professional help. National Foundation for Credit Counseling will help you locate the nearest credit counseling agency, which can help set you on the right track.
Step ten:
The key word here is patience. You can`t expect your bad credit to turn over overnight. Bad credit is generally the result of bad financial planning over a period of time, so it is but natural that it will take some time to correct itself with good financial planning.
