How Can You Break Out Of This Credit Catch- 22 Once You Get Stuck In It

Category: Finance, Credit.

Having a bad credit history can be a real nightmare and a major source of headaches. Finding an apartment to rent, trying to buy car, putting a down payment on a house, or applying for a credit card or a loan from a bank can all be activities you are basically barred from with bad credit.

With bad credit you are pretty much financially disabled from everything except transactions that can be covered with cash. Banks, businesses and landlords can see your history a mile away and will avoid you like the plague. How can you break out of this credit catch- 22 once you get stuck in it? And it seems like all the steps that are supposed to build credit require good credit in the first place. A good place to start if you have particularly bad credit is to contact a credit counseling service. A lot of people struggle with credit at one point or other in their lives, and the use of these counseling services is a great way to get back on track. These services will help you to identify why it is you have a bad credit rating, and will help you figure out some steps you can take to repair your credit history.

Most counseling services will tell you that improving your credit history should start by clearing up any past debts or forgotten bills. It is not in their nature for businesses to forget that you didn t pay them what you owed, and they will almost always eventually contact a collection agency. Missed payments have a tendency to work themselves into ugly marks on your credit rating, and make for a bad credit history. When a collection agency decides that you aren t going to pay, they ll do everything in their power to give you a bad credit history. If you have a bad credit history, you might have been an unknowing target of one of these agencies. These collection agencies are supposed to contact you about your debts first, but if you ve moved or changed you phone number and they don t succeed, they won t be shy about ruining your credit without your permission. Whatever the reason, clearing up a bad credit history should start by settling old debts or forgotten bills.

Use your credit cards often and pay the minimum payments on your bills immediately. Additionally, you want to take steps to show that you can make payments responsibly. If you don t have a credit card, get a secured card and likewise make your minimum payments promptly. Credit counseling services can help you find additional ways to fix your bad credit history as well.