If you already realized that you do indeed have bad credit there are certain steps you can follow to further ruin your credit rating, and more than that: better it. It is a hard task generally, as everything that involves correcting our mistakes but it is not impossible. Follow the steps below and you will find it quiet easy to get rid of your bad credit.
1.Obtain a copy of your credit file.
It is very important to know what is in your credit report in order to be able to tackle the issues responsible for your bad credit. There might be also some incorrect information, too, that needs to be manually corrected, and also you need to look at the products that might be there bu you are no longer using them at all.
2. Eliminate the bad credit elements in your report
Identify the credit products that are responsible for your bad credit, like a credit card that you are only paying a minimum payment on for a long time, any overdue payments, any arrears on the loan. Find out the reasons leading to your debt and try to find a solution to make those credit products look like good credit, in other words: transform them into payable debt.
3. Avoid unnecessary credit checks
If you find that you can actually swap products and lower your monthly repayments, make sure that you are very vigilant and do not submit applications after applications. Once in the process of trying to better your credit rating you need to avoid any unnecessary spending as well as any actions leading to a lower credit score. For example if you were trying to change your utility suppliers, it is more than likely that they will carry out a credit check on you before they take you on board as a customer. This is also not a good time to move house or jobs, as they might also affect your credit rating. If you want to get better monthly payments you need to shop around or use comparison sites that will help you choose the right product for your credit rating.
4. Consolidate.
Once you know what causes your bad debt and can see clearly how much you are paying on high interest credit products, it is time to consolidate your bad credit. The rule is that you need to choose the products to consolidate first that have the longest term and highest interest, as they are more likely to cost you more money and worsen your credit rating in the long run. You need to find a solution to eliminate or change those products into preferably one credit with much lower APR and better conditions.
As I mentioned before, it is important to shop around for consolidation products, but never submit an application before you are absolutely sure that the product will eliminate your bad credit and serve you well for a long term.