Clearing up your Credit History

By Leni Parrish on June 6, 2009

The credit card is one of the most innovative ideas introduced to men. Purchases and payments are made in seconds. It eliminates the hustle of reaching into your pocket to get your wallet. This convenience is what attracts individuals into getting their own card.

With credit cards, owners are pretty much empowered with the opportunity to buy anything and submerge themselves in a day with nothing to do but shop. But one needs to be careful when going on a shopping spree for oftentimes, people get carried away by the thought of having what they want at the palm of their hands.

Postpaid credit cards are often overused, especially those that have high credit limits. It is a good thing if you are able to pay your bills in due time but once you fail, the consequences will hunt you and pull you down for a long time. And these bad credit reports will really affect your credentials. It can even hinder your employment. So to help clean up your record and avoid adding anymore questionable entries to it, here are some simple steps to be followed.

  • On time payments. Paying your bills promptly will ensure that there would be no compounded interests for the next month. On the other hand, late payments will greatly degrade your credit rating.
  • Less is more. It would be better to have fewer credit cards so you will not have to pay for monthly or annual fees of those cards you rarely use. Hence, you could save more.
  • Limits should not be infinite. Restrict yourself to a fixed credit limit. This way, you will not overspend.
  • Avoid filing bankruptcies. Although bankruptcies could be a good option out of debts, try to make it your last option. It will reflect on your records for 10 years.
  • Joint accounts. Try to seek help from your family members or a close friend. Ask them to co-sign your credit card accounts which will entitle you to a new credit scheme. Be very careful that you get everything right with this chance you are given for it will not only affect your credit but you co-signer, too.
  • Secured credits. Try getting secured credits so you can rebuild your credit. You will be obliged to put in a fixed amount of money that is enough to pay your bills.
  • Loopholes. Request for your yearly credit report and try to spot any errors. This could get you out of trouble in the future.

I hope these tips enlighten your over burned face with the credit report problems. Still, it would be better if you could avoid getting yourself into these problems. Remember, prevention is always better than cure.

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