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Dealing With Bad Credit

  • Stop using credit cards. Looking at how much you owe is less painful than getting into more trouble. Further increasing the debt you’ve accumulated will magnify the problem.
  • Pay all bills on time.
  • If you think you are going to be late on a due date, pick up the phone and call the lender. Lenders appreciate borrowers who are proactive, not reactive.
  • Develop a plan to pay down debt. Make a plan to pay off collections as a priority. “Open” collections that have not yet been paid reflect the worst on your credit history. Paid collections are listed on your credit report but will not continue to actively lower your score. We like the debt snowball. More information on the Debt Snowball coming soon!
  • Before closing any credit accounts, meet with a financial professional to learn about how that may negatively impact your credit score. Cutting up credit cards may be a better option to closing the account if you want to keep the longevity you’ve established. Be sure to research the credit card; some companies assess a fee if you don’t use the card every so often.


Now, give it time. It can take seven years or longer before your credit score and history are repaired.