There is no quick or fast way to repair bad credit history. Your credit history is maintained by credit reporting agencies that they collect from various loan lenders, banks and other creditors. If you have a bad credit history due to illness or unemployment, they can be repaired with time.
Your bad credit history can have big negative impact in case you are in dire need of credit in the near future. You have to take positive actions and change your attitude towards money as a way to improve your credit history. There are some actions you can take to repair your bad credit history:
- Get a copy of your credit report from credit reporting bureaus and check it for errors. If there are errors in your credit report, contact credit bureaus to fix them. Sometime contacting the creditors who reported the errors can help you.
- In case there are outstanding debts in your account, repay them quickly with the highest interest rates first.
- Always pay your bills on time to create better credit rating.
- And in case your debts are overwhelming, make a debt consolidation plan by contacting a nonprofit credit counseling organization.
- Be aware of companies that tend to offer you credit repair or debt consolidation loans.
- Request for a credit limit reduction from your account in order to lower your borrowing and available credit.
- Sell your valuable assets to pay off your debt. Purchase just daily routine things and use rest of the money for paying your consolidated debts.
- Plan with your credit counselor how to repay your debts and try to establish a good credit history by keeping the same job and house and maintain your savings.
- Once you have repaid your debts, try to build a good credit history. Pay off your credit cards monthly balance on time to build good credit and learn to use credit cards in a responsible way.
- Chose credit card carefully that can help you build a good credit history.
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