You have made mistakes in the past and now you are paying the price. Your bad credit is costing you more than you ever dreamed and you know you must fix it as soon as you can, but how? Here are eight things to repair the damage and put you on the right road.
Get a free copy of your credit report from all three of the major credit bureaus. Investigate any entry that seems to be in error and write to the bureau, asking it to fix the mistake. Once the error is corrected have the credit reporting agency contact all those who have lulled a report on you since the error was published, correcting the mistake.
If the bad marks on your credit report result from late and missed payments, repay these debts as fast as you can. Work on paying off all debts with the highest interest rates first your first choice. As you pay a debt off, work your way down the list. If you are overwhelmed and can't figure what to do contact a non profit credit-counseling organization and ask for help. Avoid the counseling outfits that work for profit. You don't need their fee structure.
Your non-profit debt counselor may well suggest a debt consolidation plan which will consolidate your debts and arrange one debt with one payment in lieu of the several you have had previously. Your counselor will contact your debtors on your behalf to reduce or eliminate finance charges. You may be able to reduce your monthly carrying cost substantially.
Filing for bankruptcy maybe an option in the most severe cases, Just remember that this step will show up in your credit history will reflect it for 7 years. Your qualified counselor will know if it's advisable for you.
The most important step of all is to close your credit card accounts and cut them up. You may also want to consider the disposition of any assets that you can do without. From now on buy only the bare essentials and use the rest of your earnings to pay off your consolidated debts.
Avoid services that offer credit-repair. Most of the advertising for these companies are at best, misleading.
Every application you make for a credit card shows up on your credit report, and a lot of applications will affect your credit rating. From now on, do not open credit cards and take on more debt to try to overcome current debt problems.
When all your debts are paid down and the cards cut up, apply for a new credit card and build a new unblemished credit history.
Jim Ferris is a seasoned advisor to those with poor to bad credit. When you face difficulty with financing and are looking for lenders who you can go to without fear for mortgages, consolidation loans and other high risk vehicles you'll find the answers you need given by Jim and his colleagues at http://www.badcreditovercome.com