6 Credit Repair Tactics: Fix Bad Credit

Easy credit just might be the greatest seductress of the modern era. If you have fallen prey to its wiles, you are probably in need of some personal credit repair work. This is a common position to be in and not one to be ashamed of. By arming yourself with these 6 credit repair tactics to fix bad credit, you can repair the damage and defend yourself better in the future.

Credit Repair Overview:  Pay bills on time | Stay well below your credit limit | Pay your credit card balances in full | Use secured credit cards to build credit | Get copy of credit report | Fix any errors on credit report |  Apply only for the credit you need

Looking to fix your bad credit? Here are some tips and tricks to get you started.

Tip #1 – Avoid Balance Transfer

Do not play the transfer game. Transferring your credit from one card to another to avoid making a payment is only postponing the inevitable payment. Transferring your credit is not saving you money. It is really costing you more in transfer fees when you process your transfers making the amount you owe grow even more.

Tip # 2 – Do Not Close Your Credit Cards Accounts

Consider keeping current credit accounts that do not have annual fees open. Simply using these accounts to make a small purchase every once in a while. You should then promptly pay off the balance each time you use it. This is a far better way to improve your credit than closing all your accounts at once. A bulk closure of credit accounts can actually hurt your credit rating. Do not close a credit card account that has a balance. If the card is not in default and you close it, it will reduce your credit limit on that card to zero. FICO will factor in that card as if you are using one hundred percent of your debt availability, and that will lower your credit score.

Tip #3 – Statute Of Limitation (Top 6 Credit Repair Tactics To Fix Bad Credit)

Look into the statute of limitations on your debt. Your debt will have a statute of limitations: there is only a certain period of time that a debt collector can attempt to enforce collection via the courts. If the statute of limitations has run out, you will be able to successfully negotiate a much lesser sum, and in some cases, the collector will cease to pursue the debt.

Tip # 4 – Apply For Secured Credit Card (How to Fix Ruined Credit)

One of the fastest and most effective ways of re-establishing your credit is to look into getting a secured credit card. Because this is a secured credit card, you therefore have to put a deposit on it and make a monthly payment as you would a regular credit card. This is a perfect solution for those of us with ruined credit that will stay on our credit report for awhile. The best way to balance that out therefore is to start establishing new credits and you can do this with secured credit cards. This is one of the easiest method to restore bad credit and increase your credit score in no time.

Tip #5 – Do Not File Bankruptcy

Do not file bankruptcy to repair your credit. Bankruptcy will not improve your credit. In most cases your credit will get worse. Bankruptcy will remain on your credit report for seven to ten years, making it harder to get a loan or credit card. Even after the bankruptcy falls off your credit report it can still hurt you as most companies will ask if you have ever filed bankruptcy.

Bonus Tip – Want to learn the fastest way to repair your credit?  Then Pay Your Credit Card Bills Early

Pay your credit card bill before your statement is due. Most credit card companies will report the balance of your last statement to the credit bureau so even if you pay your balance in full it might not help your credit score. If you pay that payment before the next statement is ready then you will stand a better chance of raising your credit score.

Tip # 6 – Understand Your Rights When Dealing with Debt Collectors

When dealing with creditors or debt collectors, always act in a professional matter. This does not mean you have to take abuse from them. Know your rights when dealing with debt collectors. Many times they overstep their bounds. You have rights as a consumer. If you feel you are being harassed be sure to consult an attorney.

If you are looking to fix ruined credit then one of the best place to seek credit repair is online. There are so many web pages dedicated to debt, debt management, and how to increase your credit score in no time. This is the first place to begin to find a way to get your credit back under control. You can restore bad credit. You just have to understand what makes a credit ‘bad’ and how to resolve it.

Related Post: 5 Tips To Improve Credit Score

Key Takeaway (Top 6 Credit Repair Tactics To Fix Bad Credit)

So there you have it: How to fix your credit yourself in 6 easy steps. Methods like these will help you repair your credit and learn to resist the temptations of easy money. Credit repair is not easy or fun, but it can be a learning experience. You can fix your credit on your own if you follow these tips and stay consistent in applying the work. As noted, one of the fastest way to repair your credit is to apply for secured credit cards.

This can be online or at your local bank.  You will have to make a deposit but you will get that money back once you show responsibility in using and paying the cards back on time. When you have conquered your personal credit crisis then you can hold your head high and be confident of avoiding such pitfalls in the days ahead.

Share with us any other tips you have discovered in restoring bad credit or how to rebuild your credit. Leave us a comment below.

Cheers!

P.S. Grab access of our eBook, “Empower Your Personal Finance“, so you can develop a strong money mindset and master debt.