Financial Problems – How to Repair Bad Credit History

Tips on how to repair your credit score is usually tips on how to prevent bad credit score. There is really nothing much you can do about it once you have already blundered. The most you can do is to be a good credit individual again. So here are the first principles you should remember:

Pay on time

Only a careless individual would not pay his or her bills on time even if he or she has the funds to do it. There are thousands of cases when you can have problems with your credit simply due to carelessness. People make up so many excuses such as "I woke up and totally forgot about it because I was too busy on other things" or "I misplaced the bill." Remember that there are measures to avoid these things such as keeping reminders such as post it notes, and simply being more organized. If you fail on this step, then you are most likely the type of person not responsible enough to have excellent credit in the first place.

Three things that will pull you down significantly

Try to stave off bankruptcy as long as you can afford to. The same thing goes with collections and liens for mixed tax payments (remember the first step is to pay on time in the first place). Remember that bankruptcy will stick to your credit history for up to a decade. Collections will last up to 7 years and unpaid liens will last you till you die. Remember to cross out these three things because they are the most dangerous things for your credit health. If you get one of these bad records, your score will immediately go down. This is one of the best tips on how to repair bad credit score for good reason. Although these problems are recoverable, you can not simply rebound from them right away. They will way you down for a long time and you will realize just how heavy they weigh you down through the years when you could have used a loan or good rates but could not get them due to your low FICO score.

Keeping clean with your credit cards

Do not keep too many credit cards. The temptation to use all these cards up will be simply too great. Manage your financial affairs by closing credit card accounts are not used that much or simply do not get new credit accounts in the first place. These just add up to your temptation. Then, after you close an account, report this to the three major credit reporting agencies. Aside from not getting a lot of credit cards, you should also learn to manage the credit cards you already have.

Checking your credit report

Now here is one of the best tips on how to repair bad credit score that some consider as not purely preventive. This can actually bring down your credit (although technically, you are just correcting it). Did you know that there are many people who have mistakes in their credit score? Credit reports are done by machines. A small mistake in spelling of you name or address, un-updated personal details, just one additional zero to a transaction, each of these things can lead to mistakes that lower your score. Thus, it is advisable to get your free annual credit report from the three major credit reporting agencies. Study them carefully and dispute the mistakes in them.

Source by Joel Owens

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