You’ve ordered a copy of your credit report and you’ve found several late payments listed under your credit history. These late payments will certainly pull down your credit score. Since creditors often prefer clients with good credit rating, those with bad credit are often denied or rejected. What can you do when confronted with this problem? Is there a way to regain your good credit standing?

Let’s discuss ways on how you can work towards a good credit standing.

Addressing the Root of the Problem

In order to find the most effective solution to repairing a bad credit history, it’s important to realize the real cause of the problem. Take a closer look at your lifestyle and spending habits. To come up with an objective evaluation, ask yourself the following questions:

• What has caused these late payments to your creditors?
• Have you been spending more than what your income allows?
• Have you been charging too many purchases to your credit card?
• Are you having difficulty in paying off your credit card balances in full each month?
• Are you in the habit of submitting only the minimum payment to your credit card company?
• Do you frequently carry over your balances from month to month?

Late credit card payments

Many people with a bad credit history may not know it, but submitting late credit card payments can easily put you in a serious debt situation. Not only will you be charged with high rates, you can also get penalized with late fees. In fact, your credit card company can increase your interest rates without notice just because of a single late payment. In recent years many credit card companies have adopted the policy of increasing your interest rate as soon as you are late paying any creditor. So one late payment to a creditor can raise ALL your credit card rates.

Regaining good credit

First of all, make it your goal to pay off all your existing balances. It’s practical to start paying off your high-interest credit cards first as these incur the most expensive charges. You can also use a zero interest balance transfer credit card to help you pay off your credit card debt minus the interest. Some zero interest balance transfer cards give six months or 12 months of introductory period and you can take advantage of this time to get off your credit card debts more easily.

Of course, you also need to make some adjustments with your spending or follow a stricter budget plan so that you can focus on paying off your debts as quickly as you can. More importantly, control the use of your credit cards to avoid incurring new charges to your account.

Pay off all your debts

Make it a point to pay off all your debts to your creditors on time at all times. In case you won’t be able to submit your payment by your due date, contact your creditor in advance to explain your situation. Most creditors would be willing to extend your due date for another 30 days without reporting it as a late payment. Lastly, check your credit report after every six months to make sure that all information contained in it are correct and accurate.