Bad credit can happen as a result of how you manage your personal finances, as well as accidents, family issues or illness. Unfortunately, even if the problems were caused by circumstances out of your control, the effects of bad credit can be devastating. Since living with poor credit can be difficult, you'll want to be proactive about clearing up your credit problems and getting your finances back on track.
Don't fall for credit repair scams that claim that they can remove accurate information from your credit report. While it's true that you have the right to file a dispute to remove inaccurate information, accurate info cannot be removed. You'll either have to wait for negative credit to come off your report, something that can take seven years or more, or you can try negotiating with creditors. Negotiating with creditors takes work, but you may be able to persuade a creditor to remove negative information if you can pay off or settle the debt. Just make sure to get the creditor's agreement in writing.
Paying off old debts and reducing balances should be a priority when trying to manage bad credit. Work out a monthly budget and stick to it, using extra funds to pay off your debts. Many recommend that one should pay off debt that has the highest interest rates first. Prioritizing high-interest debts may help you pay off what you owe more quickly.
While it will take time, if you manage your personal finances wisely, you'll eventually may improve your credit health credit. This means that you might be able to get some credit accounts with low spending limits. If you meet your credit obligations by maintaining low balances and paying on time every month, your credit scores could improve over time and you could find yourself in a healthier financial position. Just be sure not to make the same mistakes that caused your past credit problems.