There are stories all over America right now that are talking about college students finding themselves in severe debt. These students find it impossible to tell their parents and are overwhelmed.  They are completely unaware of the fact that there ways to come back from debt and bad credit. Rather than seek help, they simply gave in.

The first step in order to repair your credit history and credit score is to gain a better understanding of the number that determines your credit worthiness. Your payment history generally comprises about 35 percent of your score, meaning that you need to pay every bill and every credit card payment in advance, rather than just on time. This will tend to tell potential lenders that you are much more likely to pay them off in full and on time all the time without any hassle.

The more recent the mistake is, the worse it will be for your credit report and score. 30 percent of your credit score is based on your current outstanding debt, including how much money is still owed on car loans and home loans, and how many credit cards you have that are at or close to their limits.

You should have a few credit cards, and they should always be 35 percent or less of their limits. This is going to indicate whether or not you are in control, using your limits wisely, and whether or not you are actually living on your credit. How long you have had your credit for also plays a part, contributing about 15 percent to your score. This is because lenders are going to want to know that you have a long standing history of paying as a responsible borrower.

Another 10 % of your score is based on how many inquiries exist for your credit reports. If you are constantly applying for tons of credit cards and loans, then this is going to indicate that you are in financial trouble and may steer lenders away from you.

The final 10 % of your credit score is usually based on what types of credit you have. This should be a mixture of unsecured credit cards and revolving loans, showing that you are capable of handling your money. Credit report repair should begin with making payments on a timely basis, working your balances down to below 30% of your limit. To repair your credit score numbers you will need to improve your credit history by finding out what caused you to fall behind and figuring out a way to rectify the issues. You can usually call your creditors for smaller monthly payments, smaller interest rates, new due dates or longer terms in order to better manage your debt.

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The peak holiday shopping period is right around the corner. In a tough economy, any saving is a nice bonus so we compiled a list credit cards with 0% APR for 6 or 12 months on new purchases to help consumers stretch their Holiday shopping dollars. Combined with the 0% APR, the rewards and cash back features could save you hundred dollars this holiday season. Here is a short list of the cards you may find useful. Keep in mind you will need good credit (640+) for most of these offers.

Consumers with Good Credit

Student Cards

Keep in mind that credit cards should be treated as a convenience and used responsibility. As such, we suggest using these cards as a way to make cash back or other rewards on gifts from your list. If you don’t think you have the discipline to pay off the balances during the 0% APR introductory period, we strongly suggest using cash.

Here are a few more tips to help manage your credit and credit cards this holiday season.

1. Don’t Apply for Too Many Credit Cards. Too many credit inquiries are bad for your credit score. As such, do your research first and find the right card based on your credit score and your spending habits.
2. Know the Details. Some cards have great rates for purchases but poor balance transfers rates or vice versa. Virtually all cards pay the balance with the lowest APR first. That means if you have a Balance Transfer of 0% APR and a purchase rate of 15% APR, all your monthly payments go towards paying off the lower APR balance transfer first while your purchase balance keeps accruing interest at 15% APR. Don’t fall for it! Be smart.
3. Keep Credit Card Utilization Low. If you carry a balance, make sure it stays below 35% of your credit limit on any single card. Carrying a balance higher than 35% could negatively impact your credit score and possibly increase the interest rates on your existing cards.
4. Pay On Time Each Month. Most credit card companies are counting on you to be late on your payment. Don’t get caught paying late fees or giving credit card companies the right to increase your APR. Pay on time or even a couple days early!