Debt Consolidation

From Bad Credit To Good – How Can It Be Done?

credit score improvement
Written by Shelly Evans

A person who has bad credit is not doomed to have it forever. There are in fact many things that can be done  to improve your credit score and go from having bad credit to good.

Below is an outline of three simple steps that you  can take to improve your credit rating:

improve bad credit score

Debt Consolidation

Debt consolidation is one of the most important steps that  can help you take control of your debt and help you to to rebuild your credit. This involves speaking with creditors and negotiating a lower payment on bills owed. A payment plan is then set up for paying back the amount of money agreed upon by the creditors and the borrower.

However, it is important for this to be done properly and one must make sure that the creditors mark the bill as being paid, not consolidated. There are agencies that specialize in helping individuals consolidate their debts and working with such an agency can be a good idea if you don’t feel comfortable doing it yourself.  

Who Should Choose To Work With A Debt Consolidation Service?

If you are an organized person, and feel comfortable negotiating.  Then you should try consolidating your debt yourself.  But if you are the kind of person who isn’t good with negotiations (For example, if you pay full price at a yard sale, you should probably hire a debt consolidation service!) Do it yourself debt consolidation  also takes a lot of time and organizational skills.  You have to be committed to the task and document each step.

What A Debt Consolidation Service Will Do For You

The service will help you get organized.  They will help you prioritize your debt, negotiate a monthly payment ( sometimes, they can even help you pay less then what was owed)  and they collect the payment from you and make sure your creditors are paid on time.

Many agencies of this nature also provide credit counseling and helpful advice on how to live within one’s means.

Check Credit Reports for Errors

Credit companies are not perfect and may make mistakes on one’s credit report that can lower one’s score. A person should carefully examine his or her credit card reports and make sure they are fully accurate.

An individual who finds errors on his or her report should contact the company immediately and have these rectified. A person who does so should also be able to show proof that a particular bill was in fact paid on time and/or in full.

Use Credit Wisely

Using credit wisely is very important, although it is easier said than done.A person who wants to improve his or her credit rating should use credit judiciously and only for purchases that he or she can afford. The ensuing bills should then be paid immediately. This method of fixing one’s credit is a long term job, but it is more than worth it. The more often one buys something on credit and pays for it on time, the better a rating he or she will build. Over time, maintaining this habit will boost one’s credit score as the person will prove that he or she is financially trustworthy.

These are some simple ways in which one can improve a bad credit score and get a credit rating that he or she can be proud of. It is not easy to correct misinformation, work to consolidate debts or be wise in using a credit card. In fact, it is much easier to live within a reasonable budget than it is to fix the damage done by unwise spending habits. However, repairing bad credit is not an impossible job. Anyone can fix and improve his or her credit ratings with a bit of time, wise financial management and self discipline.

About the author

Shelly Evans

Shelly Evans is a freelance writer and loan consultant. She specialize in writing articles about obtaining financing despite having bad credit. She has more than 16 years in consumer credit and collections and 4 years in business financing.


  • Got a few credit cards in my younger years and had them maxed out within a month. Then just pay the minimum payment each month and forget the rest. After a few years with interest I owe way more than i used. Always thought about consolidating but not sure how to get the process started, also a little nervous to ask.

  • Does having my debt consolidate down to make it easier and more reasonable to pay off, hurt myh credit score?

  • Debt consolidation shouldn’t hurt your credit score if you are working with the right company. I have seen some clients credit reports that show constant late payments but thats because they choose the wrong company to work with. Ideally your debt consolidation company should work out a payment schedule with your creditors, your supposed to send the consolidation company 1 check each month according to your contract. The consolidation company then makes the payments on your behalf. These payments should all be on time. So it will have a positive effect on you.

    Sometimes if they negotiate down your debt meaning you are not paying 100% of what you owe, the creditor will post the debt as “paid as agreed” which effects your credit but its much better than a late, collections, or charged off account rating

  • Don’t be nervous 🙂 Do you have a family member that you trust? You can have them call your creditors on your behalf. They may have to fax over a signed paper showing they have your permission to discuss the debt. Or you can contact a debt consolidation company have them represent you. Better to get this fixed sooner than later 🙂

    Good luck!

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