Step You Can Take On Your Own to Fix Your Bad Credit


Living with debt or bad credit can be very stressful, but you can take steps yourself to improve your credit. Improving your credit rating requires that you take positive action and change your attitude toward money. Follow these steps and be on the road to debt recovery.

Step 1
It is important to request a copy of your credit report from a credit bureau, so spend a few dollars and complete this first step. I recommend Equifax Credit Report. If there is an error, write to the bureau and ask it to fix the mistake. It might also help to contact the creditor who reported the error. Some creditors will contact the bureau on your behalf.

Step 2
If the bad marks on your credit report result from outstanding debts, repay them as quickly as possible. Pay off those with the highest interest rates first.

Step 3
If your debts are overwhelming, contact a nonprofit credit-counseling organization to work out a debt-consolidation plan. A counselor will help you consolidate your debts and will contact your debtors on your behalf to reduce or eliminate finance charges. This can reduce your monthly payments by up to 40 percent. You are more than welcome to contact me as well. We will be more than happy to help you with this process.

Step 4
Steer clear of any services that offer you credit-repair or debt-consolidation loans. These companies will plunge you further into debt. Be suspicious of any company that advertises aggressively or sends unsolicited mail or e-mail.

Step 5
Close your credit accounts and cut up the cards. Sell valuables or liquidate assets that will help you repay your debts. Buy the bare essentials (food and gas) and use the rest of your earnings to pay off your consolidated debts.

Step 6
Work with your credit counselor to repay all of your debts. Meanwhile, live a life that will help you re-establish good credit. Pay rent and utilities or mortgages promptly, keep the same residence and job, maintain savings and checking accounts, set a budget and stick to it.

Step 7
Once you have repaid your debts, apply for a new credit card to build a good credit history. It might be easier initially to get a department-store or gasoline credit card or one from an employee credit union. If you don't qualify for a regular credit card, apply for a secured one. With a secured credit card, you fund an account up front and then "charge" expenses on it. This card will show up as a credit card on your credit report and, if used responsibly, can help you build a good credit history. There are a number of secured prepaid cards that I can recommend highly for people in positions like yours, in most cases no credit check is required, they offer quick approval you can shop online, pay bills and use ATMs. Try RushCard or you can try Prepaid Visa Card. Here is another company AccountNow Debit MasterCard Apply for as many as you have patience for.

Step 8
Promptly pay off the balance of the credit card monthly to build good credit. Use the card responsibly.

Step 9
The most and final important step in maintaining your credit is to watch your credit. Protect your credit in the future. Monitoring your credit reports for changes is one of the best ways to protect yourself. Here is a link to Equifax credit watch program which is one of the best in the country. Equifax Credit Watch program Programs of this type will cost you a bit but it will save you lots of hassle in the future.

I hope the above steps can help you in getting back your good credit rating.

Cheers!