How To Repair Your Bad Credit
When it comes to personal credit, having good credit can open up financial doors
for you-on the other hand, having bad credit can get those same doors slammed abruptly in your face! Bad credit can be a result of a few different things, mostly carelessness with paying bills on time.
If this has been the case with you, fear not, for there is a way to get that credit score back to where you want it to be. After all, credit cards are the most accessible form of credit that one can obtain from a bank.
This is largely because when it comes to the process of getting a credit card, it is not difficult at all, particularly in comparison to getting a traditional bank load. There is very little paperwork required when you apply for a card, and you can usually be approved within a mere twenty four hours.
This is one reason why just about everyone who should or shouldn't alike has a credit card handy in their wallet. Unfortunately, because they have such easy access, this can lead to severe irresponsibility, which leads to damaged credit ratings for consumers.
While spending in the moment may seem fun and carefree, few stop to think about the consequences, and what actions it will take to repair that rating. While you may not care about your rating now, someday when you need a load for a house or a car, you will care!
Obtaining a credit card may be easy, but the hard part is resisting the temptation to spend over the amount of money that is pre-loaded on the card or going over the pre-determined credit limit. The temptation to overspend is even more likely when the borrower is going through rough times, such as a divorce or job loss.
It can also occur when an unexpected bill arrives and payday is still two weeks away. Unfortunately, some credit card holders fail to pay back the money they charged at the end of the billing cycle, even if they had the intention to do so.
So, he or she pays only the minimum monthly requirement on the credit card. Then, another bill shows up and then another and, before too long, the card is maxed out.
By the time the end of the month rolls around, the credit card payment is neglected for more bills that have become more important. Meanwhile, the high interest continues a steady climb, pushing the minimum payment up with it.
Soon enough, the cardholder owes much more than he or she initially borrowed. If this scenario sounds familiar to you, you will be happy to know that there is life after credit card debt.
In fact, there are several ways to redeem yourself, one of which begins with adjusting and repairing your credit rating. After all, you may want to borrow money in the future and your credit rating will be the first piece of information potential lenders will look at in order to determine if they will lend money to you.
The first step toward cleaning up you credit rating is to stay away from applying for too many credit cards at the same time. You want the banks to see a clean and clear financial picture when they pull your credit report.
Simply applying for too many credit cards makes you appear desperate for a loan. In addition, having too many credit card balances makes many lenders reluctant to issue you the card.
And why shouldn't they be? They want to know that you are capable of reducing your balances and having numerous credit cards makes it more likely that you will charge up debt on multiple credit cards and have difficulty making all of your payments.
Another way to improve your credit rating is through the use of a department store credit card. Department store credit cards are a great place to start because these cards are generally the easiest to acquire.
After using one of these credit cards for a period of time, you will be more likely to be approved for a more traditional credit card. Since credit card fraud and identity theft are so prevalent, it is a good idea to obtain your own credit report.
In this way, you can check it to ensure every purchase you have made is accounted for on each card. If you notice suspicious activity on your credit card, be sure to notify your credit card company immediately as well as the three major credit reporting agencies - Transunion, Experian and Equifax.
Be absolutely sure to report any errors that you have identified on your credit report as well. Even the smallest errors can have a large impact on your overall credit rating.
by: Terry Daniels
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