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Why and how to fix bad credit

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This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

If you applied for a credit card but the company denied your request, if debt collectors are trying to reach you because of unpaid bills, if nobody can co-sign your loans, if you cannot get a job or if someone else's name is on the utility services, then you probably already figured out that you are living with bad credit. You should not be surprised if card insurers are intending to close several of your credit cards and raise interest rates because of late payments or the appearance of a new collection account. Even though you are trying to find excuses not to check your credit report because you are scared to face the truth, these signs cannot be overlooked and you need to repair your credit fast. You might have to spend time and energy to complete the process, but once you succeed, the benefits will undoubtedly increase the quality of your life.

Reasons to repair your credit

Your bad credit controls your life because it impedes you from having a home, a car or a job and if this is not a good enough reason to start fixing it, then we have plenty of benefits that come right after credit repair.

  • First, you will release your partner from financial pressure because he will not have to be the only one applying for credit cards and loans thanks to good credit and lift the burden of co-signers' shoulders who practically do not draw any benefit from helping you.

  • Secondly, you can get a higher credit limit because you will have the means to prove that you can pay the bills on time and a lower insurance rate, which will allow you to save money.

  • Debt collectors' harassment and high security deposits will become history once you improve your credit score. In addition, you will have the possibility to start a small business because you will not encounter difficulties in receiving financing.

How to fix bad credit

The first step is to do what you have been trying to avoid lately, which is to check your credit report because this will help you establish your current financial situation and see where you desperately need improvements. You should also look out for inaccurate information or fraudulent accounts. The next step is to analyze your payment history, contact your creditors and agree on a payment plan that will help you bring up to date everything. However, you have to keep paying your bills on time in order to exude reliability and trust. Prevent closing credit card accounts and try to pay down your debt as fast as possible. Furthermore, if you do not qualify for a regular card, a secured one will allow you to obtain an installment loan. Do not let yourself carried away and start applying for many loans because it can destroy your score. After completing all these steps, the only thing left is to change your financial habits in order to maintain a good score in the future. It might seem a difficult process but it is worth it.


This article was written by Adam Monson for on .

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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