Having been through all this I want to share with you my experiences and the means to getting a top credit report after you've severely damaged it. Whilst the process isn't instant it doesn't take long, and with a little drive and determination (which, let's face it, we all get when we work our way into serious debt) anybody can regain a healthy credit score.
Most of us don't see the early warning signs of a credit problem. We just brush them off, telling ourselves it doesn't matter, everybody does it and it'll turn out alright. Truthfully, it's more like we just don't want to know that we have a problem, which is understandable. Most of us don't like to admit that there's something wrong with us. Having been through this myself I can see it now, but I used to happily work my way through repayment after repayment after repayment... it was an endless process which gradually got me into increasing debt and created an ever -increasing problem for my credit report.
Credit cards are one of the main factors in all of this. The original purpose of credit was to provide convenience to customers who wanted to make big purchases without having to wait for very long periods of time. It also meant it was possible to stop worrying about bringing cash everywhere that you went. However, what started off with innocent intentions has grown into a mass epidemic of addicted spenders who sink into a world of debt.
Unfortunately these innocent intentions have also been undermined by the banks themselves. They constantly encourage us to borrow more and more money. If you're having trouble with debts just borrow a bit more money until you can get your way out of it. Of course, they know that this just creates a spiraling mountain of debt but they get all the benefits and none of the drawbacks, reaping in repayments constantly that amount to far, far, more money than the borrower would ever have kept in their bank account. With all this, the banks make a huge amount of profit through interest.
To repair your credit score you have to take into account the fact that lenders don't like to lend to those with large debts. So firstly, you have to start paying off your debts. One of the best ways to work through debt is to get a debt card - this allows you to spend only money that you have in your account, and not spend money that is borrowed from the bank.
Ensure you pay back your monthly credit card payments. Keeping up with these will contribute to the repair of your credit score. Make sure you do not make late payments, and if possible make your payments early.
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