Finance & Loans

Lessons to learn from bad credit

For whatever the reason if you have faced bad credit, the experience is not something you will ever want to be faced with again. Nevertheless, you can use this experience for your advantage by understanding where you went wrong and coming up with a strategy to prevent it happening again. Where can you start?

First, analyze the root cause of the debt. Rethink about how you are going to make adjustments in your life.

Pay your bills on time. Late payments build up bad credit against you.

Spend wisely. Always think twice before purchasing an item. Do not be tempted by special deals and hire purchase options.

Reduce the number of credit cards. The more cards you have the more your debt will be. If you do use a credit card, do not use the maximum limit allowed, use only upto 40% of the credit allowed.If possible, take only the necessary amount of cash and leave the credit card at home. This way you will not be tempted to overspend.

Find a way to increase your income. Get an additional qualification that will get you a better job or consider taking up another job.