Damage Control: How to Repair Your Bad Credit Rating



If you’re currently struggling with debt, or your credit score isn’t looking too pretty, there are a few steps you can take in order to repair the damage. Understanding your credit score is important, in order to understand where your number came from. 35% of your score comes from payment history, 30% of your score is how much debt you owe, while 15% is the length of credit history, 10% is the type of credit used, and the last 10% is how much new credit you’re currently using. It can be difficult to grasp, but it’s simple to understand that a bad credit rating can cause all kinds of problems. Let’s get started on a some damage control:

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Review Your Credit Reports to Make Sure They’re Accurate


Paying for your own mistakes is one thing, but you definitely don’t need to be penalised for somebody elses. You should always start off by making sure your credit reports accurately reflect your debts and payment history - otherwise you could end up paying for it. For example, any kind of loan you need could be rejected, leaving you with no option but to apply for loans for bad credit. Call your creditors and explain the mistakes you think have been made. Ask them to revisit potential errors and make sure you get any corrections in writing if they do change your history - but don’t be rude to them!


Set Up Payment Reminders for Bills


Your payment history counts for around 35% of your credit score, so it’s important that you pay all of your bills on time.


Stop Using Your Credit Cards So Much


Get your credit card spending under control. If you need something, pay for it with cash rather than on your card while you settle any debts you have and make your credit rating look more attractive. Never use credit to pay off your debt, as you’re simply moving your debt rather than paying it off.


Get a Secured Credit Card to Build Up Your Credit History


Secured credit cards work a bit like debit cards. You deposit a sum with the bank, and that’s the credit limit you have on your secured card. You can continue this until your credit score has risen.


Add Good Credit Accounts to Your Credit Files


When you add good credit tradeline accounts to your credit profiles, you increase your credit score. If you add good credit accounts and have just one bad account deleted, you could increase your score by as much as 80 points.


Contact Your Creditors


If you reach out to your creditors as quickly as possible, before any harassing phone calls begin, and they could work with you to schedule smaller payments.


Avalanche or Snowball?


Avalanching your debt is paying your debt off one by one, starting with the debt that has the highest interest rate. Start off with the most money you can afford, and then continue until your debt is destroyed.
Snowballing your debt is paying off the lowest balance debt first before moving on to the increasingly bigger debts. This will give you an early victory, which could potentially motivate you to continue on your way to a debt free life.


Repairing a bad credit rating is hard work, but so worth it in the long run. Get started now!


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