Finding yourself with a bad credit score is not the end of the world. In fact, you can even bounce back from a devastating bankruptcy, as long as you have the necessary patience, and you are willing to make the commitment. There are a few steps involved, and it is important that you do not skip any of them, however hard or time consuming they may seem. You will not fix everything overnight, but you can be sure that you will feel a sense of accomplishment once you see the numbers of your credit score begin to rise.
First of all, it is important that you contact all of your creditors. By ignoring the phone calls and letters, you are just prolonging the problem. Your creditors may be willing to work with you by accepting lower payments or settling for a smaller payoff. By gradually working your way through the list of people to whom you owe money, you will be able to cross many debts off of your list that much sooner.
When you are sure that you have your current debt under control, then you are probably safe to apply for a new credit card. Your water company and your mortgage company may report your bad credit, but they have no interest in reporting any good credit practices. This is where your revolving debt must come in. It is very important, however, that you research the available credit cards before filling out the applications. With a poor credit score, you are not likely to receive a credit card from a large institution, so don’t take a chance on lowering your credit score further by receiving numerous rejections from the major banks. Instead, focus your attention on a department store credit card, or find a secured credit card with requirements that fit your situation. Avoid certain credit card companies that feed on people with bad credit, because you could end up in a worse situation than you are already in. With adequate research, you should be able to determine which companies can help you, and which companies you should avoid.
The next steps are the most crucial. Obey the rules, and wait. Show your creditors that you are serious about repairing your credit history by making all of your payments on time. Avoid the temptation to make large purchases once you receive your new credit card in the mail. And don’t get frustrated, because you will soon begin to see a difference.