2 Options On Repairing Bad Credit History

So, how do you clean your less-than-clean credit report ?

There are 2 instrumental options here :

1. Bring the Payments Up to Date. If you cannot make the payments on all your credit facilities, to avoid further spoiling your credit history, you should restructure your loans.

For example: You can lengthen the tenure of the loan so the minimum commitment every month becomes less, or you can look at rate reduction or at the possibility of consolidating your loans with a cheaper loan.

Speak to your respective bankers to figure out the best way to normalize your repayment behavior. It is true enough that most banks will try to help and restructure their customers’ loans.

I have used this option and I find it very instrumental.

2. Consider Debt Consolidation. If you owe on credit cards and have mortgages, you could ask the bank to extend a bigger line for the mortgages in place of some collateral to pay off your credit card bills.

Or you can ask for a top-up in terms of mortgages and use the money to pay your outstanding debt.

As for this option, I have tried once, but to no avail. I was only told by the bank that credit cards and mortgages are of different products. They cannot be consolidated. Well, it is my guess that the bank doesn’t want to hurt my feelings by telling me honestly: You have bad credit, madam!

Upon normalizing the payments, the credit report should then reflect your new clean report.