Many people have fallen into the pit of having bad credit. Any plans you have for the future will come to a grinding halt. Making any plans moneywise will be tough. If you manage to make any, they will be unachievable because of you having a poor credit report. With such type of credit score, you could end up defaulting on some of your credit card payments. Defaulting the payments will obviously attract the attention of the debt collection agencies, and the cards will be sent to them. You might end up getting depressed, haunted and burdened by the fact that you have poor credit ratings. People with such ratings constantly have depressing thoughts at the back of their heads like, “How will I fix this burgeoning problem?” “Will I be able to fix it?” “What if I need a car, and I have to take a car loan” “Will any lender approve a car loan for me?” Instead of whining about your financial problems you should take charge of your problem and wipe out all the financial mistakes that could be holding you from achieving your goals.


There are steps that one should take to get out of this harrowing financial situation. One of them is that you ought to plan and manage any monies that you have saved up. You have to set targets and goals of how you are going to manage your accounts better. The other thing you should do is to obtain your credit report, read and understand it. You will then get to see what other lenders and loaners are seeing. You have to be forbearing because you just can’t solve the issue of having a bad credit miraculously overnight. As you do all this, you should research on what bad credit can do to you and for how long this condition can impact one’s life.


One thing you will get to learn is that all unsettled debts remain on the credit report for up to 7 years after you cease paying them. Another unfortunate thing is that they stay in the review even after one completes the payments. However, it is always advised to complete the payments even if they go to the collection agencies because it will be of your benefit in the future.


If you choose to apply for insolvency, then you are looking at a prolonged period for which you will have a poor credit rating. There are various types of bankruptcy, some will remain on your credit review for many years.


You should always ensure that you submit all your payments promptly and use your credit wisely. A good relationship with the lenders means they will view you as a trustworthy and dependable borrower. Another thing that one should do is to check credit card reports and make sure information written on them is accurate. A borrower can have a copy of his or her credit report for free from each of the three companies once every year.