How I Recovered from Bad Credit?

Bad credit was probably my worst nightmare in my entire life. I was hounded by creditors, I couldn’t borrow money during times of financial turmoil, I couldn’t sleep at night, and even my relationships were affected. It was really hard to function as a normal and happy human being. It literally took life away from me and I’ll never forget those times.

However, I know that what happened was my own fault. Before I started to build the habit of spending, I was living paycheck to paycheck, not caring about what the future might bring. A simple debt that I missed rolled on, and there I was, trapped in a quicksand of debt. After a few months of hiding, I realized it had to end.

The Enlightenment

What really empowered me was when I asked myself, “Is this the life that I want?” Running away was very tiring, I tell you. So I stopped, turned around, and faced everything that was trying to chase me behind. There was no one to help me but myself. No one to fix my troubles but myself.

This new-found willpower helped me take small steps. I tell you, it wasn’t easy. If you aren’t determined, you will never succeed. But hey, I didn’t want to live like this for life, so I better start moving. I admitted my mistakes and accepted them, and planned a way not to repeat them again.

Goal Setting

Before you can actually start moving, you have to set a goal. No one runs without knowing that there’s a finish line waiting at the end, or else you’ll be running around an endless loop. You have to know what you want, it gives you the boost and empowerment that you need.

The Sacrifice

Here’s where the tough part was. There was nothing good with the way I lived in the past, so if I am bound to take away my bad spending habits, I’m going to have to take away everything! But this is not what I wanted. Although I acknowledged my mistakes, I didn’t want to punish myself like that.

So I started with some, kind of easy sacrifices. Instead of dining out almost every other day, I limited my outside meals to once a week, until I could manage to do it only twice a week. During my weeknights with friends, I asked them to host a potluck or bring the party alternately to my place or theirs. This actually helped not just me but everyone of them.

Whenever I see a pretty item on the mall, I refrained from buying it, especially when I didn’t really need the item. Every cent counts, and I dedicated every spare money towards my debts. If I really, really wanted something, I had to take some overtimes, or cost-cut on other expenses.

At the beginning, it didn’t seem like it took me very far, but as I learned of new ways to improve, I definitely saw the progress. Instead of being relaxed, I even doubled my efforts to get to the goal sooner. I soon took a second job, and thought of other ways to lessen my monthly expenses, such as being wise on my grocery trips.

You see, you don’t have to stop eating out or forget about your social life. You only have to make smart choices and take control of your spending habits, and soon enough, credit repair will be just a piece of cake to you.

3 Things You Probably Didn’t Know About Your Credit

Your credit rating is composed of a number of factors that contribute to your credit score- that three digit number lenders or businesses take a look at whenever you’re applying for a loan or utility service. Most of the time, we only think that paying our bills on time will give us stellar credit scores, but that’s not the case. Today I’ll reveal some credit secrets that you probably don’t know.

First, getting a new credit can lower your score. Some people might have heard or have been raised to believe that if you’re trying to fix your credit, apply for a new one. However, what most of you don’t know is that each time you apply for a new credit card, for example, the average age of history will shorten, which is actually damaging to your credit.

Second, closing old accounts can hurt your credit as well. Working on the same principle as above, when you close accounts that have the longest age of credit, your credit age will shorten and lower your score. So I’m telling you, always, always leave old accounts open and active. If you really have to close some cards, close the new ones. Just in case you are suffering from bad credit and still want to get a phone for yourself, bad credit contract phones can be an easy option for you.

Lastly, credit limit is your friend. Many people think that having less credit limit can pull them away from temptation. Unfortunately, if you’re a bad borrower, you’re still a bad borrower, no matter what your credit limit is. Creditors check how you use credit which is available to you, and it kind of gives them a red flag when they see that you are maxing out your credits. Remember that it is better to keep a card with a large debt but with higher credit limit, than max out the limit of your low-limit card. But of course, don’t abuse the borrowing power of your high-limit card.

Why It’s Best to Wait Before Applying for a Mobile Contract with Bad Credit?

Patience is a virtue as they say, and so the same goes when applying for bad credit mobile phones. With all the options available in the mobile market for people like me, there was a time when I was so eager to apply for bad credit mobile phones, and I am thankful now that I didn’t, at least temporarily.

During that time, my credit had almost hit rock bottom. (I’d rather not share what my score was.) When I inquired, I only qualified for a basic handset that was too much expensive and too impractical to purchase under a contract.

It’s not to take away anything from a mobile contract or anything, in fact, getting into a phone contract can help rebuild your credit. But you also have to consider your expenses over the long term and make wise decisions.

Never jump into any deal that you feel isn’t fair for you, despite your credit situation. It could take time to fix your credit, but the results can be very rewarding.

You’ll never know, but if you are patient enough to wait at least a year to pay off other dues and your bills on time regularly, you might be able to land a fair deal after a while.