Good Advice for Bad Credit
4:11 AM
As a kid, you never realize just how tough it is to actually be an adult and make it in the real world. There are so many important things to consider, decisions to make and bills to be paid. And you certainly never realized that all major decisions in your life (buying a home, getting a job, getting a loan) can be affected by 3 measly numbers - your credit score. Bad credit in the real world is no joke to work around.
Considering everyone from lending companies to banks and car companies take a look at your credit history before approving loans or purchases, bad credit can really cramp your plans. Even credit card companies and potential employers can be turned away by bad credit. They don't really teach that in school, do they?
Once you mess up your credit, it can be a long hard road traveling from bad credit to good. But it is possible, and in the end deciding to improve your credit is the best thing you can do for your future. There are some very simple steps you can take to manage and improve your credit score.
The easiest thing to do of course is to stop your credit from getting bad in the first place. By paying your bills on time, using a credit card responsibly and building a solid credit history, you can be assured of a good score. But if you're already carrying the bad credit load on your shoulders, here are a few tips you can use to improve your score.
Your first step is to order your credit report from one of the major credit reporting agencies. You can get a free credit report from each of the big three once a year. Review it for errors or resolvable issues. Get on the phone with the involved company and your credit agency to resolve any issues. Mistakes shouldn't be the cause of your bad credit.
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.
Make sure you avoid credit repair scams, or companies offering credit repair or debt consolidation loans. You usually wind up paying a ton of interest, and it doesn't positively add to your credit. If anything, these type of loans can sometimes make bad credit worse.
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.
Considering everyone from lending companies to banks and car companies take a look at your credit history before approving loans or purchases, bad credit can really cramp your plans. Even credit card companies and potential employers can be turned away by bad credit. They don't really teach that in school, do they?
Once you mess up your credit, it can be a long hard road traveling from bad credit to good. But it is possible, and in the end deciding to improve your credit is the best thing you can do for your future. There are some very simple steps you can take to manage and improve your credit score.
The easiest thing to do of course is to stop your credit from getting bad in the first place. By paying your bills on time, using a credit card responsibly and building a solid credit history, you can be assured of a good score. But if you're already carrying the bad credit load on your shoulders, here are a few tips you can use to improve your score.
Your first step is to order your credit report from one of the major credit reporting agencies. You can get a free credit report from each of the big three once a year. Review it for errors or resolvable issues. Get on the phone with the involved company and your credit agency to resolve any issues. Mistakes shouldn't be the cause of your bad credit.
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.
Make sure you avoid credit repair scams, or companies offering credit repair or debt consolidation loans. You usually wind up paying a ton of interest, and it doesn't positively add to your credit. If anything, these type of loans can sometimes make bad credit worse.
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:
About the Author: Tawana Rashing is a freelance writer and bad credit repair specialist. She works part time for a credit counseling agency and writes informative articles for various professional credit websites. In her spare time she enjoys designing greeting cards, spending time with her family and cooking.
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