Bad Credit History – Improving Your Credit Score Is the Key

You don’t pay much attention to the things around you as long as they don’t matter to you. When you don’t have any financial responsibility, you can do whatever you want. But once you start taking responsibility, you support your family, it all starts making sense.

Each one of us desire for a trouble free life especially when it comes to our financial matters. You may have a safety net to fall on whenever you are in trouble but in this unsteady economy it doesn’t take much to get your best laid plans go away. Therefore it is always a smart thought to understand how to save more money and start early for that matter.

Questions, questions, questions!

Questions like why am I in this situation, what led me here, could this have been avoided, plagues your mind.  Do these questions sound familiar? If it does then let me tell you “this is LIFE”. Sometimes it sucks but you can do nothing about it. Expect bad things to happen financially even if you have a strong plan in place. Nobody is immune in these turbulent times.

Encountering some financial stress is nothing to be ashamed of. Believe me, you are not the only one out there. If you have ever gone considered trying a payday loan investor, there certainly can be a sense of embarrassment or failure that goes with it.

Credit score is a number based on the statistical analysis of the credit report. Basically credit score shows a person’s creditworthiness – the capability of a person to pay his her debts. The credit score is based on the credit report of a person that he or she receives for free from the credit bureau annually. Whenever you apply for anything your credit history including your credit score is checked to assess the potential risk involved for lending money to you.

Even organizations like mobile companies, your employers, home insurers and landlords check your credit score as a part of your background check. Your employer checks your credit score to see your level of responsibility.

A credit score of 660 is considered as good and the person is entitled to good interest rates. But late payments and mounting dues can damage your credit score. Even a student loan can affect your credit score for that matter. Bad credit score and high debts can be very stressful for a person. Often the question of how to improve credit score in this situation arises.

Follow these simple steps and fix your credit score with ease:

1. First and foremost go to the to get your free credit report. is a joint website by the three major credit bureaus of the United States.

2. Go through your credit report thoroughly. Check for any wrong and disputable figures. Write to the concerned creditors pointing their errors. The letter should be certified. You can also do this online. The chances are that the creditors will definitely fix the errors and remove it from your report. If not then wait for one or two months and then again send the notice, this time with the threat to hire legal help.

3. If there is no error in your report then check the reason for your bad credit scores. Is it the outstanding debts? If yes then try to pay off all your debts as soon as possible. If it’s very bad then take professional help that will do all the dealings on your behalf as they will try to reduce the financial charges. Pay off the debts with the highest interest rate first. This will improve your credit score.

4. Close your unnecessary credit accounts and cut up on your cards and spending. Only spend money on your essential needs. Spend the rest of your income to pay off your debts.

5. Set a strict budget for yourself and stick to it. Do your payments on time and increase on your savings.

6. Once you have paid all your debts, apply for a new card and use it responsibly to build a good credit history and don’t ever repeat the same mistakes.

Leave the embarrassment at the door

It does not matter that you are trying for a personal loan with a bad credit for an emergency and there is nothing wrong in it. People can tell you whatever they want but they are not paying your bills or supporting your family, YOU ARE!

Asking for money from a friend or a relative can be sometimes embarrassing especially if they say NO. But some personal loans are possible with a bad score; you get quick money at a time of emergency without having to beg for it, you just have to repay it in time.

You must have a good credit history to be eligible for certain financial advantages in life like taking a bank loan when required. Having a good credit score is great for your records and provides you a stress-free life therefore you must improve your credit score as that is the key to a financially comfortable life.