Life with a bad credit rating can certainly make life challenging. You can struggle to receive a mortgage for a home, a car loan or even a credit card. In some cases, bad credit can even make it difficult to obtain good rates on auto insurance or even the best job. Take a few minutes to learn more about bad credit and what you can do to change your credit life.
If you have bad credit this means that one or more things are true about your credit history. You have not always paid your bills on time and perhaps have left some loans default or credit card accounts to be charged off. Bad credit can also results in part from maxing out all of your credit cards and other lines of credit. Bankruptcies, collection accounts and negative judgments will also result in poor credit.
You can struggle to obtain credit if you already have a bad credit rating. Lenders will be concerned that you will always pay on your loan or credit card late or that in time you still stop paying all together.
There are some things you can start doing now to improve your credit. Try to find a way to bring all or as many counts current as possible. Perhaps you can apply a tax refund to these accounts or you can drop down to a lower cell phone or television package to save money that can be applied to those accounts. There are almost always ways to free up some extra money. Work hard to make sure that you never pay a bill late again.
Contact creditors for which you are very delinquent to determine if they will offer you any type of payment plan or payoff agreement. If the company says yes, ask that they report your account as paid or full or update your credit file to say paid as agreed if you uphold your end of the payment agreement.
Stop using credit and begin paying down on your current credit in order to lower the amount of available credit you are using. Do not close old accounts because they can actually help to improve your credit as long as they are current each month.
Look for ways to improve your bad credit so that you never need to be turned down for a loan or credit card again.