We all get into financially tight situations from time to time. Short term financial demands can catch anyone by surprise. It could be any thing such as the birth of a new baby, unexpected medical expenses or just bad timing. Whatever the reason, without care, financially tight situations can result in a bad credit history.
Once you have a bad credit history it can be a real nightmare. With a really bad credit history you are pretty much financially disabled from everything except transactions that can be covered with cash.
As a matter of fact, the credit bureaus have all your personal details such as your name, address and previous addresses, as well as credit card information. If you have a mortgage they will know about it. If you have any loans, credit cards or department store cards they know about them and they know what payments you make also. If you rent your home the odds are they know. In fact they usually know the details of virtually all financial arrangements where there is any risk of a debt arising.
How do they know?
All the banks and financial institutions routinely tell them about you. The reason they tell them is that it is in their interest to do so.
How can you break out of this credit catch-22 and repair bad credit?
You have a couple of options you can pursue that will help you repair bad credit.
Option number one- Seek the help of a credit counseling service.
Option number two- Set up a budget to repay past due bills or forgotten accounts.
Option number three- Negotiate with your creditors to pay reduced payments on your accounts.
If you follow these three options that have been presented to you, you will be well on your way to repair bad credit and improve credit score.
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