The movie Confessions of a Shopaholic tells a story of a girl who spends and spends without thinking about the consequences. She ends up spending thousands on scarves and gloves and whatever else fancies her eye. Finally, she ends up in thousands of credit-card debt and with no alternative left, we see her running away from her creditors. Not many years ago, it was a belief that all loans and credits are for the impatient. It was considered better to wait until you could afford things rather than opting for credit cards. However, scenario has changed, just with a swipe; you can buy your favorite things and always pay later. The ‘buy now, pay later’ mantra may look the glossiest; it is always not so especially if you have everything from your clothes, to furniture, to television and even home on debit. With easy credit becoming the part of the life, the number of people who get trapped in bad credit is also increasing by alarming rate. If you are among those ‘unfortunate lot’ who are trapped in bad credit, here are some tips to help you get rid of it.
Tips To Get Rid Of Bad Credit
- Fixing bad credit can’t happen overnight so the first thing is to relax. Making rash decisions or looking for easy-fix program will result only in more financial woes. Before you can repair your bad credit, what you need is your credit report. A credit report will help you to estimate, where you stand and how much progress can be made.
- Once you have your credit report, check out the entries which lowered your credit score. Outstanding debts in your credit report will need some time and discipline. But it’s also important to check your report for inconsistencies and errors in your credit report. If you find some indiscrepancies in the report then call your consumer credit company.
- Pay your bills on time. It’s the best way to get rid of bad credit rating. Banks and companies providing loan want to see that you can pay your bills on time. So, don’t forget to pay your bills!
- It’s time to work on changing the behavior which led to bad credit. Get rid of bad credit by spending less. Before buying a new gadget or those latest in fashion shoes, ask youreslf, “Do I really need this?" Try to make payments in cash, when you make a purchase. This will not only limit your credit card use but also make you manage expenses well.
- Cut unnecessary spending, starting from small things like eating outside to big things, like buying a new plasma TV. It might seem difficult but you can either watch movie on your new plasma TV or repair your bad credit! It’s time to make monthly budget and pay of the higher interest debts as it will help you repair your bad credit in shorter amount of time. Now is the time to change your spending habits.
- As a thumb rule, try not using all available credit on your credit cards. Banks and lending companies want to be assured that you don’t rely on credit.
- Lastly, if you have really low credit score, then it’s probably you were not taught to manage money. Look for a financial advisor, who can help you make a budget and reduce your debt.