Important Tips for Do-It-Yourself Credit Repair

Fear not, there's light at the end of the credit repair tunnel!

No matter how bad your credit may be, there are always steps that you can take to improve your score. Remember, although it may take a little time, the most important steps to credit repair are simply setting goals and sticking to them. Don't get frustrated… keep your chin up!

Steps for credit repair:

Make sure to pay all of your bills on time. Payments are considered late after 30 days or more, and will have a negative effect on your credit rating.

Be sure to get periodic copies of your credit report, every three, six or 12 months, and examine them closely for errors.

 Reduce the number of credit cards that you have open. Once you've written to your creditors requesting that your accounts be closed, report this status change to all three credit-reporting agencies.

Ask a friend or family member to co-sign on a small loan to help you on the road to credit repair, and be sure to make on-time payments each month. (Remember, if someone co-signs for you, their credit will be affected by payment history as well.)

Avoid bankruptcies, collections, and tax liens at all costs! A bankruptcy will stay on your credit report for 10 years. Collection accounts and tax liens, for seven years.

Having a secured credit card can help re-establish your credit, as long as you keep a designated amount of money in the account that is sufficient to cover your charges. Always be sure to make your payments on time!

Avoid applying for credit cards and loans too often, as your credit rating is typically lowered each time an inquiry is made regarding your credit history.

One final thought regarding bad credit

With regard to credit repair agencies, the most important thing to remember is that no one can legally remove accurate and timely negative information from your credit report. Be extremely cautious of these claims as more often than not, these companies will take hundreds, maybe thousands of dollars for their "services" from consumers, and then suddenly disappear into thin air. Should you choose to utilize a credit repair company, make sure that you thoroughly research the company and their procedures to ensure that their practices are completely legal, as you could find yourself in a legal jam if you've authorized them to perform such services. Most states have laws regulating credit repair companies. State law enforcement officials can be helpful if you've lost money to credit repair scams.

More information on credit repair