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Getting rid of the bad credit history is a task that can take years of effort and perseverance. However, with persistent attitude, you can be rest assured you will be able to fix the bad history and improve your credit scores and financial well being. There are simple tips that you need to keep in mind to ensure you proceed on the right track and do not give in to temptation.
Tip #1: New cards
If you have a bad credit history, chances are that you may not own any credit card. But, the fastest way to rectify your bad history is with the help of a credit card. Hence, look out for cards that are given out to people with a poor score. Banks and major financial institutions may not be willing to give you a credit card. The best option for you is to opt for secured credit cards. These are credit cards given out by financial institutions against the deposit put up by the applicant before the card is issued. The available credit limit on the card is either the complete amount paid up front as deposit or a part of it. All transactions done using this card are reported to the credit bureaus. Ensure you use them wisely as they are sure shot ways to improving your credit score. You can even consider opting for gas cards or store credit cards, but be careful since the fees and other charges on these cards may be on the pretty high.
Tip #2: Set a limit and stick to it
Remember, you got into the position of having a bad credit history because of your spending habits. Like innumerable people from various parts of the world, you also fell prey to the temptation of credit cards and spent without giving second thoughts. If you are making an effort to repair your bad credit history, the first step is to curtail you spending habits. Make a list of items that are absolutely necessary for survival and those that you can live without. Spend money on only the essential commodities. The rest can wait for later. Ensure you fix a budget for each month and stick to the budget. Use the money available on your debit card than on your credit cards. Be frugal in your spending habits and see the difference.
Tip #3: Consider balance transfer
If the current debts are way too high and banks are charging an arm and a leg on your dues, consider opting for a balance transfer on a credit card with better interest rates. While it is indeed difficult to find the right one if you have a bad credit history, there are certain banks that do offer some good deals that can help you improve you credit score. Think well and make your move. Understand all the charges applicable to the balance transfer and compare it with the current dues to ensure you are heading in the right direction.