Fix Your Bad Credit History in 10 Ways

Bad credit can be fixed

There is no easy or quick solution to erase a bad credit history. Your credit history reports are maintained by companies such as credit bureaus which collect data from mortgage companies, banks and other creditors. For aperiod of 7 years, the credit bureaus can report precise negative credit data. They can also report bankruptcy for 10 years.

Reports cannot be erased from your record. Poor credit history, even though brought about by unemployment and illness can only be corrected by time.

Your bad credit history can really affect you in the future. If you're in dire need of money in the future, your record may hamper the loan process. In reality, many people have taken sorts of action to fix their credit history. If you're one of these people, here are some ways to repair your credit history:

1. The initial step to repair credit history is for the debtor to check why the creditors have put you in a bad credit standing. Ask the creditor if there are any corrections or adjustments needed in your credit report.

2. Always pay your bills on time. Paying on time will have positive effect on your credit rating.

3. Maintain only a minimal number of credit cards. If you are having a hard time paying for all these credit cards, request the creditors to lose your account. Report to all your credit agencies about this status change. Nowadays, there are incidents where credit cards or information therein are stolen, secure your card information and number so that you will not be victimized by credit card fraud. Immediately report to the credit company when your card has been stolen. They can verify if there are any unusual transactions taking place.

4. Prevent tax liens due to an inability to pay federal or state property or income taxes and bankruptcies. A bankruptcy is kept in your credit history for 10 years. The unpaid tax liens are kept for 7 years.

5. Request a reduction in the credit limit of your account. This will lower your borrowings and your available credit.

6. Request a friend or family member to be a co-signee for a credit card or a small loan to re establish your credit standing. Always pay on time! Keep on mind that your relative or friend's credit history will also be affected once you fail on your payment.

7. Carefully choose a credit card that can help you rebuild your credit history. Designate an amount of money and maintain it in your account so that you will have enough money to cover for all the charges.

8. Secure a copy of your credit report yearly. Carefully examine the report to be sure that there are no errors in billing and it is free from fraudulent and questionable charges. There are times when a single purchase is charged twice.

If there are no errors, then you have to solve your bad credit history. You can negotiate with your credit company to agree on a payment plan. Once you have agreed on the payment plan you have to follow it to restore your good credit standing. If you fail, this will be a part of your bad credit history.

9. At times, there are unforeseen events like medical problems, job loss or divorce causing you to miss or delay in paying bills. The late payment is reflected in your record. To repair this bad history, contact the creditor and explain. Request for an adjustment in payment plan and ask them to remove the bad credit report once you have paid your balance.

10. There are available credit repair clinics which fix restructure payments and repayment plans to fit in your budget. These credit repair companies charge as much as $2000 for administrative fees and paper works.

Once you're caught on a bad credit standing, the best way can be to deal with financial institutions personally.

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