Wednesday, October 21, 2015

How to Repair Your Bad Credit Standing (part 1 of 2)

In these economically hard times, your one chance for survival is to have some decent savings in the bank. That way, should you lose your job because of the recession that is going on, you will have something to fall back to, some money that will help tide you over until you get another job. If you don’t have this, your only alternative is to get a loan. But what if you have a bad credit standing? How can you repair bad credit?

A bad credit standing is achieved if you have managed to not take care of your finances and loans. People with bad credit scores are those that have not had any payments for their loans for years or those that have not managed to even pay half of their credit card debts. If you have a couple of bank loans and a few credit cards that you have not yet fully paid in years and with interest already growing, chances are you have a bad credit standing.

Although it is quite easy to get a bad credit standing, it is hard to repair your reputation with the banks and redeem yourself. However, it is not saying that it is some impossible task. You can repair your bad credit by following some of these tips and tricks.

1. Get a Credit counseling
Admitting that you have a problem and seeking help is the first sign that you are willing to change your ways. For banks and financial companies, this is a good sign. It means that you are willing to make changes in your life and you are willing to face the consequences of your actions. Credit counseling will provide you with sound advice on how to manage you debt and how to make small payments until you finish paying for the debt. It will even give tips on how to save money and on how to quell your shopping addiction.

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