Got Bad Credit
From Debt?

Bad credit is often more challenging than having no credit at all. It can make purchasing a car or house, obtaining insurance, even landing a job, more difficult than you'd think. Potential creditors and employers often inspect your past repayment history, the amount of outstanding debt, how long you've had it, and the type of debts you've accrued. Bad credit can be interpreted as irresponsibility, higher risk of insurance claims and default on loans.

Only some of the causes of bad credit are within your control. Do your part to avoid a bad credit score by paying at least the minimum payment on time every month and close inactive accounts to improve your debt-to-credit ratio. When determining risk, banks don't necessary look at the dollar amount you actually owe, but at your overall capacity to charge. Keep your amount borrowed lower than 25 percent of your available balance at any given time.

It can be trickier to recover from bad credit sources that aren't in your control. Whether because of identity theft, debt from a previous marriage, or errors on your credit report, resolving such bad credit situations can take time and patience. Contact creditors to remove your name from joint accounts as soon as possible after a divorce. Close accounts compromised by identity theft and file disputes with the three leading credit bureaus – Equifax, TransUnion and Experian – to dispute errors or wrongful charges.

For more information on debt settlement or to discuss your situation with a Debt Specialist Start here