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Bad Credit Help: Do You Have Bad Credit?

Updated on May 15, 2011

Do You Have Bad Credit?

Applications for credit rarely receive rave reviews when prospective borrowers cannot demonstrate stellar repayment records. Bad credit manifests in two forms: no credit history and consistently inconsistent credit history. Consumers electing to float excessive balances on high-interest credit cards usually experience painful reminders from aggressive collection agencies who posses a much greater understanding of state and federal laws regulating annoying phone calls during the dinner hour. Depressing as it may seem, bad credit stigmata are not the end of the financial world: you can dig your way out.

Every cent owed must be repaid or otherwise addressed. Gracious as they might seem, credit card companies do not plan to simply go away should you continue to ignore them. High interest loans and credit card application denials will follow you all your life until you take steps to pay down your obligations. Instead of losing sleep, contact a non-profit organization that will act on your behalf or advise you in the ways of dealing with overdue credit card statements.

Is bad credit the same as no credit?

Juxtaposed against conflicting arguments for building or not building a credit rating are innumerable infomercials offering to repair credit, rebuild credit, or even magically create credit for anyone in any financial situation. Keep an open mind, but expect no miracles. Look for long-term plans that include fiscal responsibility along with negotiation on your behalf. Money may not grow on trees, but if you have a really nice tree you may be able to sell the timber as a first-step toward melting your snowball of financial commitment.

Is a credit card ever a good idea?

Not long ago, our forefathers and foremothers paid for goods and services almost exclusively in cash. Only long-term major purchases such as houses and second houses were financed. Precious few purchases were executed with plastic or with the stroke of a pen. Quite a few chickens also changed hands, but such transactions have since fallen into disfavor, not completely because few modern consumers raise sufficient populations of chickens to finance a shiny new F150 with leather interior and Bluetooth.

Do you really need any credit at all?

Relatively few of us plan to barter barnyard animals for living room furniture, therefore having good credit usually stands as an admirable goal.

Sending cash over the Internet often proves problematic: should you wish to send Mom a dozen roses for Mother's Day or order copy of Entourage Season 5 (boxed set, with director's commentary) for Dad, you will need a universally accepted credit card. Triumphing over bad credit can get you where you want to be, vis-à-vi online ordering. Undertake to use exercise your credit wisely, prudently, parsimoniously, and pedantically in order to avoid cringing every time the phone rings.

You can get there

Victory over overdue bills and overextended credit cards is within your reach. Wield your credit with skill and aplomb while carefully considering every possible purchase. Xenium purchases, for example, should not be put on credit: when you buy someone a gift, expend your on-hand stash of cash rather than putting of the payment until the bill arrives next month. You hold the power; these words of wisdom you should heed. Zanyism also has no place in financial planning or credit construction.

After reading this, my credit is

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    • Jamie Brock profile image

      Jamie Brock 6 years ago from Texas

      Great information regarding credit. Unfortunately, I missed that class in school and no one really talked to me about it and the importance of credit scores. Great hub.

    • nicomp profile image

      nicomp really 6 years ago from Ohio, USA

      @Austinstar: indeed, thou art a temperate charger.

    • Austinstar profile image

      Lela 6 years ago from Somewhere in the universe

      It's a must to have ONE credit card and pay it off every month just like your electric bill. That way you can go out and buy chicken feed.

    • tlpoague profile image

      Tammy 6 years ago from USA

      Credit? Oh ya, that is where you have the little plastic thingy right? Just kidding! I fall under the no credit because I pay for things with cash. I have had too many bad experiences with other options of payment.

      Great tips! I have been telling my cousin for years to cut up her cards. It is too easy to bury oneself in debt.

    • LRCBlogger profile image

      LRCBlogger 6 years ago

      Good info, I'm happy to say that I have great credit. It is important to keep you credit score as high as possible. It helps save a lot of money, especially when you get a mortgage, car loan, etc

    • JBeadle profile image

      JBeadle 6 years ago from Midwest

      I knew I shouldn't have spent all that money on chickens.

    • Georgiakevin profile image

      Georgiakevin 6 years ago from Central Georgia

      This a great and timely Hub. It is so needed in this day and age, thank you for posting it.