Eliminating Your Bad Credit Record

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When trying to borrow more money, it is normal for the lender to check your financial background. How efficient you’ve been at paying back past loans will directly result their decisions whether to approve the credit or not. For those with black marks against their name though, all hope is definitely not lost. In fact, there are several ways in which you can get rid of your poor record by simply taking the right initiatives and contacting the appropriate people.

 

Conduct a Credit Check

Before you do anything to improve your financial situation, you’ll need to find out how bad your record actually is. After all, some lenders might complain to the credit bureaus without you realising you’ve done anything wrong. Fortunately, you can get in touch with a local credit reporting agency and find out what information is contained within your personal file. This will give you a good idea of the level of work that you have to do to solve any issues caused by your financial history. The good news is that these checks are free as long as you choose the right agency.

 

Deal with All Disputes

Once you have your credit history written in clear English in front of you, it is time to go through everything with a fine-tooth comb. From overdue payments to being listed as a missing debtor, everything should be there.

If you spot anything that seems erroneous however, there are methods of getting these entries removed and improving your records. These include:

  • Contacting the lender for further information and asking them to personally withdraw the complaint if it isn’t accurate.
  • Calling your regional financial ombudsman and rectifying the issue through them if your lender is taking a long time resolving the claim.
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By 401(K) 2012 under CC BY-SA 2.0

By 401(K) 2012 under CC BY-SA 2.0

Use Credit Frequently

While it may seem counterintuitive, the best way to improve your debt history is to borrow as much as you can. If you pay everything back in the specified amount of time, you’ll gain a better record. For this reason, a bad credit loan is extremely worthwhile. Not only will it give you extra cash in your time of need but you will also improve your credit profile if you adhere to all of the lender’s terms and conditions as well! Show the banks that you are a responsible debtor by getting those loans paid off in the right manner.

 

Look to Friends and Family

If you have any debts that you really cannot pay off on your own, it might be time to get external help. The first stop will be your friends and family as they will be the most willing to provide assistance without worrying about excessive interest rates. In fact, those close to you may just give you the cash you need without charging you anything extra on top. In this case, you can help pay off your personal debts on time and in full. You’ll also avoid the risk of your credit history being dragged even further into the black.

 

Seeking Financial Counselling

Lastly, you can get help from the experts if all else fails. There is always light at the end of the tunnel with the right credit management advisor by your side. As well as giving you the tactics to pay everything off in full, they will also negotiate with the lenders so that they can then allow you to repay the total amount without putting your rating at risk even further. Although you may have to pay these counsellors, the results they provide will be well worth it in the end as you can then slowly work your way towards a financially stable future.

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