How to Fix Your Bad Credit

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By lxlunat1cxl
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Fix Your Bad Credit

Some of the most important purchases require good credit. Without good credit, it is extremely hard to purchase homes and cars. Read on to learn how you can fix your bad credit with some easy steps!

Difficulty: Easy

Instructions

Step 1

A common cause for low credit is because of high credit card debt. Chances are, credit reporting agencies will lower your credit score. There really isn't much you can do except trying to budget and stop spending and paying the debts. If you are paying $200 a month to pay some credit card debt, try paying $100 twice in a month. Because the finance charge on your credit card is based on a daily basis, paying faster can help save you money.
Step 2

Sometimes, there could be an error on your credit score. Request a copy of your credit from a credit bureau and ask them to fix the mistake. It also helps to contact the creditor who reported the mistake. This can easily improve your credit.
Step 3

Large debts can also significantly affect and lower your credit. Contact a credit-counseling organization to help with managing your debt and to work out a consolidation plan. A counselor can help to reduce your finance charges and help you pay your bills.
Step 4

Next, close your credit card accounts and eliminate all of your credit cards. Sell valuables that you do not need to pay off your debt. Paying off your credit cards is a way to increase your credit.
Step 5

Make sure that you pay your bills on time. Skipping and paying your bills late can result in a low credit score. Mark the dates on a calendar to remind you to pay on time.

Comments

candicegriffith said

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on 10/12/2009 I have serveral student loans that are eight months over due, and credit card balances and personal loans that are horrendous. The personal loans are my fault. I only use them for school related expences. I don't spend a lot. I have Lupus and it prevents me from working or even going to school the way I want to. It has caused me to quit school and work. I plan to continue school in the near future. I know I'm going to have to apply for another loan. I looked up my credit score and it's horrible. I was informed that I need to file for bankruptcy. I'm only 27. But I guess I got to do what I got to do. My question to anyone who can answer is, What exacty does bankruptcy do for you?