What Is Bad Credit and How to Fix It
What is bad credit?
What is bad credit? Bad credit reflects your past failure to keep up with your credit agreement and inability to get approved for new credit. Examples would be bankruptcy or vehicle repossession. Bad credit occurs when these things occur several times rather than just a single time. Having bad credit will hinder you from lenders getting you loans and assisting you with other financial matters. A good credit score is your passport to competitive interest rates for mortgages, cars, credit card offers, job offers, insurance premiums and more. A strong score is worth money because it saves you in excess costs. If you know you have bad credit and want to fix it, click on CreditRepair.com now and start improving your quality of life.
Main causes of why I have bad credit
Late payment: This is the most common on a credit report. The late submission exposes you to increased charges and penalties. If you can’t make a payment on time, please contact your credit card company and discuss it with them!
Defaulting on payments: Not paying your credit card bills assures a bad credit rating. Again, please contact your credit card company. They will try to work with you.
Foreclosure: This sends a message to lenders that you have a history of not keeping your payments current and are a high credit risk. Don’t hesitate to contact your lender. The last thing they want to do is go through the foreclosure process.
Judgement: When debtors take you to court and there will be a possibility that you are going to have your wages garnished until you pay off the debt. This shows lenders that you had to be forced to pay off your debt by the court system.
A charge off: An account which has been charged off is very detrimental to your credit rating.
Defaulting on a loan: Like a charge off, it is obvious to any creditor that you are a bad and high credit risk. Very important. Work with your lender!
Filing bankruptcy: This is the option of last resort, as it is the most harmful to your credit score. Hopefully, you will never be in this situation.
How can I fix my bad credit?
Repairing bad credit is challenging and difficult. It takes considerable time and there is no quick way to fix bad credit. Usually the most pleasing ways to repair bad credit fail, and you should beware of the claims to improve bad credit fast. The following are the ways at which bad credit can be fixed. Many of my clients have been very happy with CreditRepair.com.
Checking the credit statement: This is vital for checking for any errors / miscalculations. This helps in establishing and checking that all payments are correct and accounts are well transacted. Any errors/ miscalculations should then be reported to the relevant authorities. Creditsesame will work closely with you and point out what steps you need to apply to build your credit rating back up.
Reminders: Most financial institutions have payment reminders and making the credit payment on time is very important. The financial institutions offer manual/ online reminders. These reminders help you recover and plan for time of payment. Take advantage of these options.
Reduce your debt: The burden of you paying a large sum of money to different debtors is big and knowing how you can reduce these debts is vital. You must have a plan. I recommend National Debt Relief. My clients have reported positive results working with them. Click on the link below and get started now.
Understanding your financial status and the plan for you to succeed should be fully put in place. Remember, your credit statement could mislead the entire process, just because of errors or charges that you are unaware of that are caused by many factors. Get your credit score now! Click on the link below.