Free Yourself From Bad Credit

A damaged credit is certainly a serious matter

. To solve the problem, a person has to be willing and determined to take positive action. Listed below are ten steps that people with bad credit must do to be free.

1. Go easy on your credit cards. Obviously, you don't want to accumulate more debts by charging expenses to your credit cards. If you own credit cards, keep them somewhere safe and out of your reach.

2. Examine your personal credit report. When was the last time you checked your report? In some cases, a low credit score could be a result of errors in the report. The best way to be sure is to order a copy of your report from each of three major credit bureaus. This way, you can check the real status of each of your accounts.

3. Fix errors in your report. You should know that errors in your report can be fixed or removed. You only need to send a letter to the bureau that issued your report to request for correction. Enclose a photocopy of your report with the wrong items clearly marked. You can also include photocopies (NOT ORIGINALS) of receipts or documents that support your claim.

4. Keep up with your bills. How you submit your payments can make or break your final credit score. Keep in mind that payment history makes up 35% of credit rating so submitting payments on time is crucial in improving bad credit.

5. Don't send multiple applications. When you send an application to a lending company, an inquiry will be made in your report and you can lose a point with each inquiry. If you wish to get a loan, do your research carefully before sending an application to your chosen lender.

6. Never close an account with an existing balance. Closing out a credit card to escape payment will only worsen the situation. If you really want to close an account, be sure that you zero in your balance. Furthermore, request your creditor to indicate in your report that it was you volunteered to close the account, and was not forced by your creditor to do so.

7. Speak with your creditors. The most sensible thing to do is to talk to your creditors about the situation. If you're having a difficult time keeping up with your payments, your creditors may be able to help you out by making adjustments or modifying their terms.

8. Pay off your debts. Of course, to completely repair bad credit, you should be able to pay off your debts. If you really owe money to your creditors, then there is no escaping your responsibilities. If it's not possible for you to pay all your debts at once, make an arrangement with each of your creditors. Find ways to produce the cash you need by selling some of your belongings or getting a second job, or cutting back your personal expenses. Rest assured that your sacrifices will be worth it once you regain your good credit standing.

9. Get help. Sometimes, there is more to the problem than just having bad credit. If you fall into the debt trap because things got out of control, seeking professional credit counseling may just be what you need. Check out the National Foundation for Credit Counseling to find a credible credit counseling agency.

10. Don't lose hope. Repairing bad credit may take a while depending on how bad the damage has been. Don't expect the problem to be solved in one day. As long as you are taking the right steps to move forward, you should be able to get out of bad credit soon.

by: Shelly Evans

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