What is a Bad Credit History?

A bad credit history can sometimes seem like a curse... whenever you apply for financing or for a loan, it always seems to pop up and cause you problems.

Having a bad credit history can even cause you problems when applying for some jobs or other opportunities! Before you let it get under your skin, though, you should know that it is possible to live with (and even improve) a bad credit history.

Of course, the first step to getting past your credit and getting on with the rest of your life is understanding exactly what your credit history is and what it means.

Understanding your credit history

Fundamentally, a bad credit history is exactly what it sounds like... a report that states that in the past, you've had problems with your credit.

Perhaps it's a result of several late payments in a short period of time, or a debt that you were unable to repay.

Regardless of the reason, your bad credit history is an indication to any potential lenders that there may be a risk in lending money or extending a credit line to you.

It doesn't in any way indicate that you're a bad person? just that you've had problems with money before. And if financial problems are what caused your bad credit history, then working to correct your financial problems is the first step in repairing your credit.

Repairing your credit history

Since money is at the heart of your bad credit history, then money is also the best way to get rid of it. It will take some time and may require some careful budgeting, but it is possible to turn your bad credit history around on your own.

The first thing that you'll need to do to correct your credit is get a copy of your credit report, which will show you which lenders have made negative reports concerning you.

These reports are what keeps your credit score low, and taking care of them will be a major step toward fixing it.

Contact the lenders and creditors that have made negative reports, offering to arrange some method of repayment. Some creditors will allow you to repay only a portion of what you owe, others require the entire debt plus interest and fees? but all of them will be more than happy to try to work out a plan to get their money back.

While working on clearing old debts, you should also make sure to keep your current accounts up-to-date; the more positive reports you can get in the present the better. As the older debts are repaid, the newer accounts will have more bearing on your credit score.

So long as you keep your current accounts up to date and paid on time, your credit score will slowly but surely start to rise? and your bad credit history will soon become nothing more than an unpleasant memory.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Free Credit Report - Really

2005 marks the year that consumers will be able to... Read More

Credit Card Debt: One Way To Avoid It

One of the biggest problems people have in these modern... Read More

Rewards Cards: Are They Worth It?

Virtually all consumers will have a credit card at some... Read More

Save Money and Lower your Payments by Improving or Repairing Your Credit

Having a better credit score not only represents easier access... Read More

Getting Your Credit Report and Understanding Whats On It

If you intend to apply for a loan, you need... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

Credit Card Traps: How To Spot Them On The Spot!

They arrive in your mail - a conspicuous looking mail... Read More

What is Credit Repair and How Can It Help You?

There are millions of consumer credit reports on file from... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Our World Of Credit Cards! Which One Is Right For You

There are not many of us who do not have... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card,... Read More

Credit Verus Debt

Secured and unsecured debt - what's the difference?It's easy to... Read More

Ethical Finance: Who Benefits From Our Spending?

On one hand consumers are being universally criticised for running... Read More

How To Use Your Credit Card For Ultimate Financial Advantage

Using a credit card wisely is an important step in... Read More

Credit Card Incentives

Credit card companies want your business. After all, lending money... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Useful Tips On Avoiding Credit and Charge Card Fraud

Credit and charge card fraud costs cardholders and issuers hundreds... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

Tackling Bad Credit

The first time I heard the term credit history was... Read More

Credit Suicide

Few things influence the home buying process more than your... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and... Read More

How To Protect Yourself Against Credit Card Fraud

In the high tech world of today, credit card fraud... Read More

Credit Cards - The Top 3 Things You Need To Know

Today there are so many different credit cards available, student... Read More

Stop Struggling Because Of Poor Credit And Improve Credit Rating Now

Did you apply for a personal loan only to be... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

Credit Report Disaster Through Mistaken Identity

I've got some very important info I want you to... Read More

Harassment of People in Debt by Creditors

HarassmentHarassment of people in debt by creditors or their agents... Read More

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a... Read More

Give Yourself Credit

The Beginning of the Credit Card EraIn 1951, Diners Club... Read More

Bank Robbery Growing In U.S.

Bank robbery has grown to become a huge problem in... Read More

Watch Out For Credit Repairs

It is very easy to find a site that is... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More