Bad Credit Repair -- Solving The Problem

Editor's Comment: Working on your credit score is one of the most rewarding actions you can do to improve your future. It will take some time, but it is not terribly difficult.

Bad Credit Repair -- Solving The Problem
by: Alexis Dey

It is possible to fix your bad credit, with time, patience and determination. The first step in repairing poor credit is fixing any problems you may have with money.

1) Get a credit reports on yourself and check out what is on them. To get yours free go to www.annualcreditreport.com. You are allowed by U.S. law to get a free copy from each of the three major credit companies once every 12 months.

2) Once you have your credit reports, check them for accuracy. If there are any errors or things you disagree with, you are entiltled by the Fair Credit Reporting Act law to dispute anything in the report that is not accurate. Write to the credit reporting company and explain what the problems are. They will then investigate the matter and let you know what happens. If they find the information is not accurate, they will fix that on your credit report.

Unfortunately you can’t remove anything negative that is accurate information about you. Only time can do that. But adding more good information does help.

3) If your credit needs repair, start work on it now. Start paying off old unpaid debts and loans, starting with the smallest ones.

4) Start paying more than the minimum payment on your current credit card payments.

Editor's Comment: The changes to bankruptcy code in 2005 effectively doubled the minimum monthly payment on most revolving debt, to "assist" you in getting out of debt. It's still important to make larger than necessary payments, because it shows "fiscal responsibility."

5) Do not get into any new debt. This is essential. Make it a priority to get out of debt. Cut up (or lock up) the credit cards, if they are a problem for you. Make it a commitment to become debt free.

6) Live within your means. Make a budget and live by it.

7) Start saving money. If you have poor credit, it is much easier to buy a home or a car with a cash down payment, than without one.

There are many sources of help available. Consumer Credit Counseling Service is one of the best for help repairing credit and getting debt under control. Their website is located at http://www.cccsintl.org. Consumer Credit Counseling Service provides budget counseling, educational programs, debt management assistance and housing counseling. There are also many local branches of this nonprofit organization, so check for one near your location.

There are many “for profit” organizations that will help you with debt consolidation loans, but beware! They often are very expensive. You can get free reliable help that you can trust from a non-profit organization like Consumer Credit Counseling Service instead of paying hundreds of dollars to one of them. Or, you can educate yourself and do it for free.

Some other good places to go online for more credit and financial advice are listed on my website at http://I-can-buy.com/resources.html.

About The Author By Alexis Dey © 2006 Mohave Publishing. http://mohavepublishing.com. For ideas on how to buy a house when you can’t qualify for a home mortgage loan because of poor credit, look for the exclusive FREE e-book, Buying a Home When You Have Bad Credit,” which can found at http://I-can-buy.com.

Editor's Comment: Like it or not, today we revolve around our credit reports. The better yours is, the more doors open for you. I encourage you to start with what you can do today.