How to Fix your Bad Credit History
If you have a bad credit history then there are some actions you can take to recover from a poor credit rating. At this point, I don't recommend a payday loan or any sort of unsecured loan. Although it's likely you will be rejected for most anyway, the last thing you want to do is get into more debt. People with bad credit need to plan for the long term and not just the short term.
Pay Bills On Time
The first step to fixing poor credit history is to always pay your bills on time from now on. This will show that you are reliable and can meet commitments. This will get you on track to a good credit rating.
Stop Using Credit Cards
Credit cards are the largest source of bad credit ratings. You must take immediate action and stop using your credit cards. Tear them up, freeze them or give them to a loved one. Anything that stops you from making those impulse purchases. And you should definitely NOT be paying your bills with a credit card!
Credit debt consolidation is one way to cancel your credit cards as the balance is put into a loan instead.
Take a Second Job
Although its hard work, you simply need to be earning more if you want to fix your credit particularly if you have large monthly loan repayments to adhere to. The extra income will help you to catch up on bills and of course contribute a small amount to a savings account for future or emergency use.
Get a Small Loan
This might sound like crazy advice to give to someone with bad credit, however if you have a family member co sign with you on a very small personal loan (say $2000) and you make repayments on time, this will without doubt fix your credit rating alot. You will lose money in the short term but long term you will be better off.
These are just a few quick tips to help you repair your bad credit history.
