If you asked ten people with bad credit how they ended up in their situation, you’d likely get ten different responses. You’d hear about how an ex took everything in a divorce and left them struggling to make ends meet. You would hear about unexpected layoffs that meant payments took a backseat to buying groceries. And someone would tell you how their lack of financial responsibility got them in over their head.
One thing all ten people will tell you is this: they never WANTED to have bad credit.
It’s a situation that no one desires. It feels like a burden; a heavy weight hanging around your neck. And I should know. I’ve been there.
Fresh out of high school, I get a cell phone contract and a credit card. Those are the easiest ways to begin building your credit rating…if handled responsibly. I’d make the minimum payments at first. Late payments, then missed payments became the norm as I was lackadaisical with bills.
I was in arrears with both, and in debt beyond my means. I drove a clunker of a car, and I couldn’t see the way out of my predicament. Finally, I cancelled my credit card and reduced my cell phone contract to its minimum, and started paying down my debt. It was months of ramen noodles and hotdogs while paying meager rent to a friend. But I paid it off.
Debt-free, I still had a credit problem. Namely, no one would give me any. I had damaged my rating and needed to rebuild so I could gain some financial security once again. And in my tough spot, here are some tips I discovered to begin rebuilding credit quickly.
Like me, you can successfully rebuild your credit. After just a couple years of diligence, my bad credit rating was a memory, and an explainable mark on my credit report.