So, you just pulled your credit report, and it’s official your credit is thrashed and you need solutions on how to fix it. Fixing bad credit isn’t difficult and with some new habits and helpful hints you can minimize the problems and move forward into good credit.
Fix outstanding debts and make a plan
Pay anything and everything outstanding. For the bills that you cannot pay, make a payment arrangement and arrange for timely payment that will fit into your monthly budget. Be sure to explain the reason behind your tardiness, as banks will be more understanding if they know it’s not a regular problem, but a one-time circumstance that has now been rectified.
New, good credit
It may seem odd to plan to apply for new credit after you have had such bad previous credit. A lot of people after having bad credit decide to completely avoid using credit and then are surprised when even years down the road they are declined for something like a mortgage. The only way to really improve bad credit is to replace it with good credit. This can be done by applying for a credit card as soon as possible. It is true that you will probably only receive a low limit if you receive anything at all, but you should still plan on working to get a credit card even if it takes you a few months. If you find yourself declined ask why, and they should be able to provide you with a solution that should allow you to make some changes that will meet your criteria.
Consider a secured card
If you continue to have trouble receiving a credit card, a great way solution to fixing bad credit to get a secured credit card. It is true that you will have to put money down for this, but you needn’t despair as in a short amount of time this will improve your credit enough for you to get an unsecured credit card.
Even though fixing bad credit is not too difficult, the time frame will vary based on the complexity of your situation. It’s important to stay with good habits and you will see steady improvement that will cause you to have great credit. You can also get access to great loans and credit products that will enhance your life and your family in a positive way without breaking the bank.