Having bad credit can cause a lot of unneeded stress in your life. If your like me the hardest step in repairing bad credit is actually doing something to fix your bad credit history. Once you realize how important your credit score really is and how it will make your life easier you will do something about it. In this article I will tell you how to rebuild your credit history when it is bad.
Repairing my credit has been one of the best lessons I have ever learned. If I did put myself in such a bad situation with my credit I never would have understood how important it is to maintain a good credit score. Believe me I am not saying I am glad I once had bad credit and that I am still working hard on improving it but I am glad I did my research.
GET YOUR FREE CREDIT REPORT- go to www.annualcreditreport.com and get a free copy of your credit report.
DO NOT MAKE LATE PAYMENTS- Late payments stay on your credit report for seven years. If you neglect to pay the bill at all you will have a charge off on your account which is, the bank considers you as a loss and close your account, or even worse you will get sued by the bank.
DO NOT MAX OUT YOUR CREDIT CARDS- Using all of your available credit is not good. Try and use 20% or less of what you have available. The less credit you use the better your score will be.
DO NOT LET AN ACCOUNT GO INTO COLLECTIONS- Having an account go into collections will haunt you for seven years! Do not let it happen!
DO NOT CLOSE OLD ACCOUNTS- Keep as many accounts open as you can. Two reasons: 1) The more available credit the better. 2) It will lengthen your credit history which is good.
Rebuilding bad credit can be a very long scary process but in the end it is 100% worth it. I know having a bad credit history is scary but the sooner you do something about the sooner you will improve your credit score. The first step in improving your credit is to go to www.annualcreditreport.com and get a free copy of your credit report.
After you receive your report go through it carefully and make sure all the information is accurate. Then begin to see how you can repair your credit to improve your credit score. It may be overwhelming and it may take time but it is all worth it because good credit is very important and will make your life easier.