Bad credit gets in the way of qualifying for loans
, applying for new credit cards or purchasing items such as a car or a house. Bad credit varies in degree.
Almost forgivable are a few late payments every month or so. Drastic cases come from debts and late payments that span out for months.
We should all avoid having a bad record with the credit bureaus. A bad record can prove to be a big hassle and once you find yourself with one, you should fix it as soon as possible.
Eliminating bad credit cannot happen overnight and requires a lot of patience on your part. It usually depends on the degree of how bad it is.
Repairing it may take months, or more or less, a year. You may first want to do your credit check yourself. It is advisable that you occasionally check your credit records from the bureaus to look out for any errors and to make sure you have not been a victim of identity fraud.
Clear up any disputes so as to clear up your credit record quickly. If the source of your credit problems is your outstanding debts, recover by paying off all your outstanding debts and as much as possible pay those with the highest interest first.
If your bad credit looks very drastic, you can try selling some valuables or liquidate your assets to pay them off. Meet all payments on time on other cards so that the good records can outweigh the bad ones.
Stick to your budget and spend only on the essentials. You can also contact your bank and ask if your card can be paid automatically from your savings account.
Try to apply for a new credit card to build a new credit history that will overshadow your former bad credit. If you do not qualify for a regular card, try getting a secured card.
Finally, try to seek the help of professionals to give you counseling. A counselor can help you consolidate your debts and negotiate with your debtors on your behalf.