Bad credit does not have to be a permanent dilemma. If you are presently dealing with an unimpressive credit, below are practical tips that you can do to improve your credit history:

Put a halt to your credit card use.

If you are having a hard time keeping up with bills, this is not the time to use your credit card for shopping. Charging new purchases to your card will only add up to your burden. If you must use your card to keep your account active, use it only for a small amount of purchase and pay it in full right away.

Order a copy of your credit report.

Have you checked your credit report? Order a copy from each of the three major credit bureaus and make sure that your report is free from errors or unauthorized transactions. If you find any error, send a dispute letter to the credit bureau that issued your report and request for corrections.

Pay your past due debts.

Not paying your debts can pull down your credit score by as much as 35%. If you want to improve your rating, you should do your best to pay off all your outstanding balances and be on time in paying off your current bills.

Do not apply for new credit.

This is not be the best time to apply for new credit. If you want to take out a car loan or a mortgage, you may want to wait for a few months until your credit score has increased. Work on improving your credit history first before taking out a new obligation.

Do not immediately close your old accounts.

Do not just close out an old credit card account because you are not using it. If you’ve had that card for a long time, it could mean erasing the oldest parts of your credit history. You can still keep it by limiting yourself to small charges and paying your full balance right away.

Get in touch with your creditors.

If for any reason you will not be able to submit your payment on schedule, call your creditor right away and explain your situation. Request for an extension of your due date and do your best to submit your pay on the date you promised.

Adjust your spending habits.

Every penny you save can contribute to your debt repayment. Set a realistic budget plan and cut back on your personal expenses. Be creative and find ways on how to conserve your electricity consumption, avoid surcharges, or stretch your budget.

Get help.

If you have a problem controlling your spending, seek help from a trusted credit counseling agency. A credit counselor will be able to give you advice on how you can stick to your budget and manage your finances more effectively.

About the Author
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Cards for Bad Credit.
Copyright 2010