Invest Wisely

Things We Do to Make Our Bad Credit Worse

by Megan Roth5 min read
Things we do to make our Bad Credit Worse

Most of us don’t think about our credit scores when we max out our credit cards or skip a bill payment. So what are the side effects of bad credit? Well, they affect our whole lives, actually.

Here are a few examples. You have to pay higher interest rates on credit cards if you do not manage your credit card as well as the loans you take – which worsens the debt trap. Even worse, your applications for credit or loans will be declined if your credit score is really bad. Do you know that you may not even get a place to live if you have a bad credit score? Even utilities companies – your power, water, etc. – check your credit worthiness to see if you can pay your bills. You might not even get a job.

Now, the realization finally dawns that we have bad credit that needs to be fixed. Here are some of the most common mistakes we made when trying to fix our credit scores, and make a bad situation even worse.


  • Looking for a Quick Fix and getting scammed

Of the 25 million people who were victims of fraud, about 6% to 7% were victims of credit repair scams. The Federal Trade Commission has millions of reports of people in dire financial circumstances being scammed by individuals or “companies” claiming to be able to fix their credit.

Here are some warning signs that the debt relief agency you’re talking to is scamming you:

  • Asking for money before any work has been done
  • Asks you not to get in touch with the credit reporting agencies directly
  • Asks you to dispute information on your credit report that you know is accurate
  • Asks you to lie when applying for credit or a loan
  • Will not tell you your legal rights when outlining their services


  • Not educating yourself about how credit works

Just because you have bad credit doesn’t mean you can’t learn how to fix it. A big mistake that many of us make is trying to fix it without really understanding it.

Sometimes getting professional credit counselling help can be the best thing you can do. It is best to choose a non-profit counselling agency. Here are a few tips on finding a good credit counselling agency:

  • Find an NFCC certified credit counselor in your locality
  • Also check with your state’s Attorney General’s office or the FTC about the counselor’s reputation. Remember, no complaints doesn’t mean that the agency is fine, do more research on them before signing up for anything
  • Make sure you know your rights as a consumer and understand exactly what services the credit counselling agency is going to provide before you sign on the dotted line.


  • Avoiding the problem

If you already have bad credit, then sticking your head in the sand is by far the worst thing you can do. The situation will just keep deteriorating until it reaches rock bottom and you get slapped with a lawsuit, have to file for bankruptcy or have to take a wage garnishment.

Dealing with the problem head-on is the only way to make it go away. If you can’t pay your debts, you need to get in touch with your creditors immediately and work together to come up with a repayment option that works for you both. There are way in which to negotiate credit card debt.

Getting your credit fixed as soon as possible is the only solution to bad credit. It just takes patience and discipline and it can be done.