Credit Cards And How To Repair Your Credit Score

No one will disagree with the fact that credit cards do have their own advantages. It is also equally true that if used irresponsibly, they also have the capacity to become a great menace to eat away your peace of mind. Some people get overwhelmed with the ease and convenience of using them for buying whatever they want and go on a shopping spree. Such an attitude will pull them into a debt trap and their credit score will ultimately get a severe beating. If you want to avoid such a situation, you can follow a few tips.

- The first step you should take is to know your credit status. You have a few credit bureaus from which you should try to get this. Only if you know which are the accounts on which you should focus on, you can chalk out your strategy.

- You should understand that only the accounts to which you are not making regular payments will spoil your credit status. You must make efforts to get current on those accounts and this will greatly improve your rating.

- You should not try to get fresh cards till you repair the situation. Your fresh applications will most probably will get rejected and apart from that, even if you attempt to apply for them after repairing your credit rating, your applications will be viewed with apprehension.

- You should not close accounts where the balances are still open. They may adversely affect your credit status.

- Communication is the key in getting the required help and assistance from credit card companies. You should have a frank talk with them and they should know that you are willing to pay back your debts and your intention is not to cheat. These companies will definitely understand genuine difficulties and any one may face such difficulties.

- Last but not the least, you should take action and start paying off your debts. Sheer rhetoric will never satisfy these companies.

Apart from the above tips, you must not also close your card on which there is still credit available. If you close it, your total available credit will be reduced and this is not good for improving your credit card rating. Likewise, you should not close your oldest credit card also. If you do so, your card history will become short. Apart from your payments, companies look at the length of the card history also.

You should also not commit the mistake of closing the credit card that offers the best terms such as low interest rates, waiver on annual fees, etc. Every one will agree that a company that offers such terms is definitely better than a host of others that ruthlessly charge high rates and do not offer any other benefits to users.

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