Can You Rebuild Your Bad Credit?

We strive earnestly maintain a positive credit status. However, sometimes we may find ourselves in circumstances that can adversely affect our credit status like divorce, unmanageable bills and bankruptcy. Regardless the causes of a poor credit score, it is always possible to redeem it and enjoy other financial privileges. However, such a move requires planning and financial discipline. So how can you rebuild your bad credit score?

The first move is to identify the components of the credit report. Any citizen can get a copy of their credit report from the Credit Reporting Bureau including Equifax, Experian and Transunion on an annual basis. The rationale for getting the report is that it helps in determining the accuracy of the figures indicated and raise any dispute before commencing on settling.

The actual financial position of an individual is only evident after analyzing the credit information presented by each of the three providers. Some people may have several credit cards bearing the money they owe to others. It is always costly to repay credit while using numerous credit cards due to the interest charged on each card. To make it easy, one should consider transferring the balances to a credit card with a low APR. Using one card will facilitate a monthly payment towards one company. On the same note, a secured credit card can prove advantageous to people with several open accounts and a shallow credit record. With the secure card, one can make payments through it without having to divide it into the various accounts.

Although such arrangements can be made without much assistance, one may find it necessary to seek the help of a professional credit adviser especially if he/she has an immense debt from various sources. The credit expert advises on the prioritization of the debts and how to evade fine emanating from late payments. The adviser can also approach the individual creditors to negotiate for his client to inform them of the client’s financial status and ability to repay the debts. As a mediator, he can convince he creditors to revise their terms to make it easy for one to repay the debt conveniently. The idea makes it easy for one to bargain for a flexible way of repaying as well as increase the chances of improving their credit score.

In conclusion, the financial position tat one finds himself in is not always a barrier towards improving the credit score. The longer the history of poor and inconsistent payment, the longer the process of regaining a good credit score. It is always advisable to maintain a high score to enjoy attractive financial offers. However, if the unexpected happens and one finds himself in an inevitable situation that slashes the positive locks on his credit score, steps explained above can help in regaining the former position. Although individuals can develop a plan to improve the status, it is advisable to seek the services of an adviser who will help in developing a viable plan. Therefore, the answer to the question is, yes; you can rebuild your bad credit status.

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Posted on May 5, 2023