Bad credit sounds like a total burden. But when you have a bad credit standing, it is a reprieve to know that it will not last a long time and that there are actually measures you can take to improve it or prevent it altogether. Some people, though, may take several actions out of desperation that might do more damage than good to their credit standing without them even realizing it. Let us look at a few of these items in detail and here’s hoping you try to avoid them as best as you can to mend your bad credit.
Cancelling credit card accounts
Some people have this wrong notion that if you get rid of your credit card, you get rid of your bad credit too! But doing so will actually damage your credit standing as you might have unpaid balance in your card which you might have overlooked. Before dialing your credit card’s 24-hour customer service hotline, make sure to check first that you have zero balance in your account before applying for a cancellation.
Complaining about too many items all at the same time
Are you one of those people who scrutinize every bit of your statement to check if it is indeed accurate? Well, good for you for taking the initiative. The downside of this, though, is if you’ve found several discrepancies and you would write to complain about it all at the same time. This may cause your credit card company to delve deeper into your credit standing or investigate further on your queries, which in turn can put you in a bad credit spotlight. It is always best to dispute items separately, in separate complaint letters to be on the safe side.
Using unregistered mails to send your letter of complaint
Although a registered mail could be much costly than its unregistered counterparts, this could go a long way in sending your letter of complaint as this will most likely yield a favorable answer instead of a “Return to Sender”.
Seeking help from the wrong debt relief agencies
If you are neck deep in bad credit there is a big chance that you might seek the aid of a credit help organization to help you deal with your predicament. The best step will be to ask for recommendations from your valued and trusted friends and acquaintances before walking into a credit aid agency’s office. A background check on this agency’s reputation and track record will also prove helpful. Of course, you want to make sure first that this agency will help you overcome your bad credit standing instead of taking you deeper into the rut by making money off you.
Transferring you credit card debt to a new credit card
How convenient it would be if you can transfer your bad credit into a new credit card without the burden of accrued interests, right? Sometimes some credit card companies, perhaps to entice more new applicants, offer a zero-interest rate in credit balance transfer which can be quite attractive, only be wary of the hidden surcharges and make sure that you pay it all off before the zero-rate payment period expires.
Bad credit is not a good thing to have. But, if you observe the mentioned steps above, you stand a good chance of turning it around for good. This should make possible loan opportunities way easier for you if ever you would be in need of one in the future. So, take care of your bad credit by doing the right steps.