Let’s face it, bad credit is ‘bad’. It will reflect on your credit report and will have a negative impact. But if you dwell in the negativity, it will only leave you depressed. We focus on the positive instead and see what good can happen in bad credit.
You are very right when you think of paying off the debt. That is ‘first and foremost’. Being able to bring down the remaining balance to a $0 will really do you good.
But if you think that paying it off will automatically delete the bad credit you have incurred, you are wrong. Because it will be reflected on your credit history, anyone who will check it will see that you have had late payments in the past.
Consistency is Key
Don’t lose hope! You see, if you pay off your total debt completely, so much the better. But if you don’t have the finances to do that, what you can do is to pay the amount of the missed payments first. One you’ve settled that, make the minimum monthly payable. You do not need to exceed the due amount for the month, you do that if you have some extra cash. If you don’t, just stick with the amount payable for the said month. Make sure to keep current with your payments and stay as consistent as possible.
Being decided on making good your bad credit is the beginning, staying consistent is what makes it possible. If you have been paying your dues on time, it will also reflect on your credit report and history. It will show how much you have paid so far, and that you no longer have missed payments.
This will show lenders the progress that you have been going, trying to fix your credit situation.
The progress will also impress you the most. Seeing how well you have fared will most likely motivate you more to do better. Fixing your credit, after all, will benefit you the most.
Say Goodbye to Bad Credit Forever
While it is true that bad credit will not disappear right away, it also won’t stay there forever. After seven years from incurring the negative record, it will be deleted. And if you have been really consistent in paying off your debts and keeping current with your monthly dues, all the bad credit will be erased and only the good information will show in your report.