Growing up, it was hard to imagine that abstract terms such as "bad credit," "credit report," and "credit score" could have such a big effect on your life. Unfortunately your credit score can effect just about every major life decision you may have to make. Bad credit can definitely get in the way of achieving your goals.
Financial institutions such as banks and lending companies use your credit score and history, along with other factors, to decide whether to give you a loan. Credit card companies use it to approve or decline a credit card application and determine what your annual APR should be. Even potential employers may look at bad credit as a reason to refuse hiring you.
Fixing bad credit isn't an easy job, but it is possible. It takes dedication, determination and discipline to do it, but the positive effects on your future can be immeasurable. There are fairly simple ways to improve your credit, even if they may take time.
Of course, the easiest thing would be to never get bad credit to begin with. But since the real world isn't as easy as a movie, it's not always possible to pay every bill on time and build up a strong credit profile. However, once you realize your credit may be spiraling out of control it's time to get tough and do something about it.
Request your credit report and review it for any outstanding issues or errors. If there are definite errors, you will have to contact the involved company as well as the credit reporting bureau to resolve these issues. You do not have to suffer bad credit for someone else's mistakes.
If you find outstanding debts or issues on your report, bring your outstanding balances up to date. If you can pay them off at once, perfect, if not, at least negotiate payment plans with the debtors. If you really want to repair your bad credit, make sure you stick to these scheduled payments month after month. Late payments can have a big (and negative) effect on your credit.
Don't be drawn in by credit repair companies offering impossible promises and debt consolidation loans. Nine times out of ten they are a scam designed to take your money and leave you worse off than before. Besides, debt consolidation can sometimes make bad credit look worse, and stick you with a very high interest rate.
If you're really in a hole with your bad credit, contact a legitimate nonprofit credit counseling organization to get solid advice and help with setting up debt consolidation or repayment plans. Any company promising to erase your bad credit immediately is too good to be true. The most effective way to repair your bad credit is to invest time and energy into strict budget and debt repayment plans.
Financial institutions such as banks and lending companies use your credit score and history, along with other factors, to decide whether to give you a loan. Credit card companies use it to approve or decline a credit card application and determine what your annual APR should be. Even potential employers may look at bad credit as a reason to refuse hiring you.
Fixing bad credit isn't an easy job, but it is possible. It takes dedication, determination and discipline to do it, but the positive effects on your future can be immeasurable. There are fairly simple ways to improve your credit, even if they may take time.
Of course, the easiest thing would be to never get bad credit to begin with. But since the real world isn't as easy as a movie, it's not always possible to pay every bill on time and build up a strong credit profile. However, once you realize your credit may be spiraling out of control it's time to get tough and do something about it.
Request your credit report and review it for any outstanding issues or errors. If there are definite errors, you will have to contact the involved company as well as the credit reporting bureau to resolve these issues. You do not have to suffer bad credit for someone else's mistakes.
If you find outstanding debts or issues on your report, bring your outstanding balances up to date. If you can pay them off at once, perfect, if not, at least negotiate payment plans with the debtors. If you really want to repair your bad credit, make sure you stick to these scheduled payments month after month. Late payments can have a big (and negative) effect on your credit.
Don't be drawn in by credit repair companies offering impossible promises and debt consolidation loans. Nine times out of ten they are a scam designed to take your money and leave you worse off than before. Besides, debt consolidation can sometimes make bad credit look worse, and stick you with a very high interest rate.
If you're really in a hole with your bad credit, contact a legitimate nonprofit credit counseling organization to get solid advice and help with setting up debt consolidation or repayment plans. Any company promising to erase your bad credit immediately is too good to be true. The most effective way to repair your bad credit is to invest time and energy into strict budget and debt repayment plans.
About the Author:
The author, Tawana Rashing, is a part time author and bad credit repair counselor. She works part time for a credit counseling agency and blogs for various professional credit websites. Her hobbies include rubber stamping, participating in community outreach programs and experimenting with cooking.
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