Repairing Bad Credit

April 6, 2010 by  
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Bad credit is something that could be very troublesome on your part because of the many restrictions that you could suffer from. Aside from the hassle of getting calls from an agent, you might also have a shameful experience of getting visited by collectors who will tell you to pay your debts out loud. Aside from this, you will be banned from other credit institutions and you can’t have access to emergency money when you need it.

To repair bad credit, the first thing you need to do is to cut excessive and impulsive spending. This will help you in saving some money that you can use to pay up some debts in the future. After you have paid some of your cards, ask the bank that issued you the cards to close the accounts. Maintaining one credit card is easier for you to monitor and pay, unlike having a lot which will urge you to spend more.

Once you have drawn down your credit cards, and you still have some debts left, you can try and sell some of your properties that you do not really need, and use the proceeds to eradicate or lower your debt. After you have exhausted all your outstanding balances, you can re-apply for a secured credit card. You will now use this card to re-establish a good credit standing. Make sure you do not commit the same mistake for you to be able to get back on your feet with your finances and not to suffer again from credit woes.