How To Fix Your Bad Credit History

By Author: J.J. Yong
Total Articles: 963
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Due to global economy crisis, many people are suffering from bad credit. In actual fact, no matter how bad your credit is, you still can take positive steps that will make it better. Don't give up at the first place.

Now, let's learn more about credit history. It actually reflects borrowing and payments of the borrowers. In United States, there are 3 credit reporting agencies, i.e. Experian, Equifax and TransUnion. They play an important role in collecting and summarizing all the credit-related activities for individuals as well as businesses. The credit reports prepared by them are important indicators for all lenders. In general, if your credit score is 600 and below, it indicates a bad credit history.

In order to improve your credit, you are required to take the following steps:

First of all, you must pay all your bills on time. You need to bear in mind that those payments that are 30 days late or more have negative impact on your credit rating.
If you are currently holding a few credit cards, you are advised to reduce the number of the cards. This is to prevent you to create more ...
... debts. Once you have closed down your accounts, please follow up with your creditors to report your current status to all credit reporting agencies.
Another alternative to improve your credit rating is through small loan or credit card. If you don't have any of them, you are encouraged to apply for one. Ask your family member or friend to be a co-signer for a small loan or unsecured credit card. The main purpose of doing so is to reestablish your credit. What you must do is to make prompt payment on your new loan. By doing so, you will be able to fix your credit gradually.
If nobody is willing to be your co-signer, then you are recommended to obtain a secured credit card. You are required to deposit a certain amount of fund in a new account. This amount of the fund is actually your credit line. Again, make sure that you make your payment on time after obtaining the card.

Last but not the least; before your credit becomes deteriorated, you are reminded not to consider bankruptcy as your financial solution. This is because once you have declared bankruptcy; it will stay on your credit report for up to 10 years. It will make your task of repairing credit more difficult.
For more information about bad credit unsecured credit cards, visit CreditCardsForBadCreditTips.com.