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 Reports - How to Maintain Your Credit Profile

Maintaining your Credit ProfileEvery consumer should be maintaining their credit... Read More

Which Credit Card?

Bewildered by the sheer variety of debit cards and credit... Read More

Beware of Bogus Credit Repair Companies!

So-called "credit repair" companies claim they can remove negative information... Read More

Credit Card Dirty Tricks

There are many of us that have been badly stung... Read More

Rebuild Your Credit the Right Way the First Time

If you are one of the millions of people out... Read More

Understanding the Function of Credit

What is Credit?Credit is the backbone and the engine behind... Read More

Collection Agency Secrets for Collecting on Bad Debt

Getting worried that one of your clients, customers or patients... Read More

Clean Credit Report: Easily Raise Your Credit Score 100 points

Clean Credit Reports, your credit report contains information about where... Read More

Lower Your Credit Card Interest Rate Now!

With today's credit card companies, there are many opportunities to... Read More

Credit Help for Real Estate Financing: Credit Scores

When you buy real estate, lenders run all of the... Read More

Avoiding Credit Card Traps

The next time you open your credit card statement, take... Read More

5 Steps You Can Take to Get Paid!

There are always some companies that have past due invoices... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Fact: Over 150 million Americans have credit report with the... Read More

Credit Repair Kit Sound To Good To Be True? It Is.

A lot of people have bad credit. It is unfortunate... 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

Credit Cards, Merchant Accounts, and Your Bottomline

Q: I'm opening a gift shop and want to be... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

Good Credit is King, When Qualifying for Mortgage Programs

If you want to purchase a new home or refinance... Read More

Comprehending a Credit Report

Obtaining a credit report is an excellent way to begin... 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

Its Your Credit - Take Care of It!

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

Credit Cards and How To Choose Them:

It may seem like a simple question but its important... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type... Read More

The Advantages of Credit Cards

There are many evils associated with credit cards, but there... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account... Read More

Identity Theft Exploding: Here?s How You Can Avoid Becoming A Victim

Americans are more concerned about identity theft than unemployment or... Read More

What Is the Fair Credit Reporting Act and What You Should Know About It

The Fair Credit Reporting Act (FCRA) and the recent update... Read More

14 Common Credit Mistakes

Establishing credit and wisely managing your credit becomes easier when... Read More

3 Free Credit Reports For You

If you were to tell someone that they can have... Read More

Credit Cards: How To Use Them

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