Repair Your Bad Credit History

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Is it time to repair your bad credit history? Living with negative credit can be extremely taxing. Hence, if you've poor credit, then take steps to improve it. You might think that fixing your financial history is an impossible task. But it is not so.

Proper financial planning and patience can help you to repair your bad credit history. You can even seek the help of counseling agencies that take a cooperative part in helping you create credit. Keep reading to discover some very effective repair tips.

Ways to Repair Bad Credit

1. Get hold of your credit report and go through it

Order a copy of your credit report from the 3 main credit bureaus in the nation. The 3 major bureaus are TransUnion, Equifax and Experian. You can get at least one free copy of your report from each of these agencies in a year. Go through the credit report. If there is any inaccurate information in the report, then dispute it with the bureau. It is the responsibility of the bureau to correct the error.

2. Remove the negative marks as soon as possible

If there are bad or negative marks on your credit report due to a huge debt amount, then try to remove it as soon as possible. You can do this by making payments to your creditors on time. It is better if the loans with highest APR (annual percentage rate) are paid off first. This is one of the best bad credit repair tips.

3. Stay away from charge cards as much as possible

It is known to everybody that charge cards come with high interest rates. If you can't afford to make the payments on credit cards, then it's better to stay away from it. If you want to purchase something, then make payments in cash.

4. Stay within the credit limits

Credit utilization ratio affects your credit score. If you really need to use credit cards, then try to stay within the credit limit. Keep your credit-utilization ratio below 30%. That means don’t ever have a balance higher than 30% of your limit.

5. Take advantage of credit counseling

If you don't have the expertise to manage debts on your own, then it is advisable to get professional help. Contact a credit counseling agency as soon as possible. The counselors of these agencies help the consumers to reduce debt load through smart money management techniques. You should stick to the budget plan suggested by them.

Finally, when you've paid off all of your outstanding loans by utilizing the above tips tips, apply for a gasoline or a department-store charge card. These cards will help you build credit history.

Contributed By: CreditMagic Community

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