Having bad credit can be a real headache. It is especially frustrating when you are haunted by bad decisions from your past. Rebuilding a good credit score is an uphill climb, but the trail does exist. These suggestions can help.

The first step in credit restoration is to build a plan. You need to make a commitment to changing your spending habits. Avoid buying what you don’t need. If you are buying something because you want it, and don’t need it, put it back on the shelf.

You can reduce your interest rate by maintaining a high credit score. You’ll be able to make your payments more easily and get your debt paid off quickly. Compare offers and choose the best interest rate you can find when borrowing money or subscribing to a credit card.


Installment Account

Improve your credit score, as well as make some profit, through an installment account. Open an installment account that you can pay for and make sure to keep an affordable monthly minimum on it. You will improve your credit score by properly managing an installment account.

If you find that you have a credit card and the interest rate has gotten to high, you do have the option to not pay the debt, though there will be consequences. There are legal limits set in place to control the amount of interest a creditor is allowed to charge you, plus your original debt is all the credit card company paid when you made the purchase. Remember that you agreed to pay that interest when you signed the contract. You may wish to make a legal claim that the interest rate charged exceeded your state’s statutory limits.

Once you have your credit score higher, you will be able to finance a house. You can improve your credit by paying your mortgage on time. Owning a home provides financial stability which is backed by your asset, the home, and as such, results in great credit. Having a home also makes you a safer credit risk when you are applying for loans.

If an action can result in imprisonment, draw the line. There are plenty of credit scams that purport to erase your existing credit file and create a new one. Do not think that you can get away with illegal actions. The legal consequences are expensive, and you might be sentenced to jail.

Credit Card Companies

Call and request lower limits on your cards from the credit card companies. This is likely to keep you from overusing credit, which can be a financial burden. It also lets credit card companies know that you are responsible, and this makes them more likely to extend credit to you as time goes on.

If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. You may be able to challenge an interest rate that is extremely high. However, you signed a contract agreeing to pay off interests. Your interest rates should be regarded as too high if you plan on suing your creditors.


Using the tips from this article will make a dramatic improvement towards your credit score. Because you are rewriting your credit report, you need to be consistent in making all of your payments. Clawing back from a credit disaster is doable, so stop making excuses and start today!