A few years back my credit was really bad.  I had lots of loans and credit card debt as well.  The past couple of years I have really worked hard on reducing my debt and improving my credit.  In this article I will discuss ways that worked for me and can work for you as well.

Starting Point

You have ordered your credit report and the news isn’t good. Your score is lower than expected and the experts say it could take years for you to get on an equal footing again. This isn’t true because there are actually many ways to overcome bad credit quickly and get to where you need to be. We are going to go through some of the secrets of overcoming bad credit quickly.

Begin by looking back at your credit report and seeing if there are any mistakes. Credit reporting agencies make mistakes all the time. You could boost your score by a huge amount simply by spotting any glaring errors. They will happily make amendments if they have made some errors.

Pay Your Bills Right

The foundation of a good credit score is meeting your obligations immediately. Paying your bills on time should be your first priority. Form a budget and set up a recurring payment, so your bills are paid on the same date every single month. Nevertheless, one way you can make this process faster is to take any bills you are behind on and to catch up. Make sure you are not behind immediately and you will instantly boost your score by a few points.

Outstanding Debt Percentages

Just because you have a high credit limit does not mean you should use it. Your outstanding debt percentage should never go above 30%. Ideally, it should be around 20%. The reason for this is a high debt percentage is an indication that you are relying on someone else’s money to get by.

If you are already above this limit, pay it down just enough so you fall below it. This will send the right message to your credit provider. Shuffling your debt around to different providers won’t make a difference. This is simply making the process more complicated for you. Your overall debt percentage is what matters, so pay it down overall, and try to pay off some smaller debts entirely along the way.

Personal Loans

Depending on your situation getting a loan to help pay down debt might be right.   Often times you can get a personal loan for an interest rate between 7% – 14% depending on your situation.  Many credit card companies have a 22%+ interest rate.  You can save money by getting a personal loan and paying off your credit card balances.  This may not work in every situation but you can find a lender that specialize in bad credit personal loans like this one here.  Check their rates before you proceed because they can be all over the board.

Don’t Open Too Many New Accounts

You likely already know that being rejected for too many credit cards and loans will have a negative effect on your credit worthiness. What you may not have known that the act of opening too many lines of credit in a short space of time is a major hindrance to your credit score.
The first reason is that it reduces your average credit length history. The longer your history the more trustworthy you seem. Having many accounts with little to no history counts against this.

Secondly, opening too many accounts at once means you are a risky customer. In addition, lenders hate anything to do with risk.


Building your credit history does take time. There is no substitute for it. These are quick fixes to give you that initial boost, but it is not going to repair your record if you have caused any serious damage to it. In the meantime, prepare a household budget and stick to it to ensure you do not cause any further problems for your credit worthiness record.