The Secret to Fix Your Bad Credit

The Secret To Fix Your Bad Credit
Bill Stanley
By: Bill Stanley
Updated: July 24, 2014
Experts share their tips and advice on, with the goal of helping subprime consumers. Our articles follow strict editorial guidelines.

Sorry but there is no secret to fix your bad credit. My advice as a money coach is to pay off the money you owe and live within your means. No secret here!

The first step is to determine what mistakes you have made. The second step is to resolve to never make those mistakes again.

Most of us need to change the way we handle money.

  • Don’t buy something if you don’t have money in the bank to pay for it.
  • Don’t use your credit card as an emergency fund.
  • Pay all your bills on time.
  • Don’t use a credit card if you can’t pay off the entire balance at the end of the billing cycle.

I volunteer as a budget counselor for a nonprofit that provides temporary housing to those who otherwise would be homeless. A want-to-be budget counselor came on board with the attitude “the government is responsible for your plight.”

I beg to differ. Poor choices is the reason most of these people are near homeless – poor choices related to education, employment, social relationships and money matters.

“Put a plan together

and take action!”

Credit means you’re using someone else’s money to pay.

The number one requirement is you pay this money back. There are two ways to improve your cash flow so you can pay back money you have borrowed – you can earn more and you can spend less.

I recommend you work on both at the same time.

The #1 concept is to live within your means.

Money out has to be less or equal to money in. It is as simple as that.

A while back, I did an article on a man named Dave and how he overcame $65,000 in debt. Dave said he was ready for change and the impetus came from his heart. His advice to others in debt is ask for help.

Remember your credit score is a snapshot in time. Your score can change every day. Do something right and your score will improve.

One reason your credit is bad might be you are searching for secrets or miracles when your real course of action should be to change the way you handle your money.

The Wall Street Journal had a cartoon that said it all, “I aspire to greatness (better credit), but I don’t really feel like doing anything about it.” Put a plan together and take action!

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