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Home » Business And Finance Articles » 7 Surefire Ways To Repair Bad Credit

7 Surefire Ways To Repair Bad Credit

Do you have a poor credit rating? If so, you are one of tens of thousands of Americans with the same problem. In fact, it seems that this has become a national 'disease.' And just what do people need that have a disease? They need a cure.

Here are some sure-fire solutions to ' repair bad credit '. Keep in mind, like most 'diseases,' credit repair can take some time, but complete healing is possible.

The First Step

The first thing you need to do is find out what is being reported about you. This is easy and inexpensive. For under $10, you can get your credit report from one of the three main credit reporting companies: Equifax, Experian, or TransUnion. Keep in mind however, that if you have recently been denied credit, you can get a free report from the same credit bureau the lender used to reject you as long as you do so within 30 days.

What You Don't Need

You don't need a repair clinic. Why? There is no legal way to 'repair' your credit. Those that claim to know loopholes and shortcuts are merely out for your money. They may even get you into legal trouble by having you fudge the facts or creating a whole new file for you. Anything legal that a clinic can do, you can do just as easily and without the cost of 'professional' help.

Further Steps to Take

1. Stop using your credit cards immediately. Put them somewhere where they will not tempt you. You may consider keeping at least one card for emergency purposes. Additionally, with poor credit, you may find it more difficult to get a credit card in the future. If you keep at least one account open, then you won't have to worry about applying.

2. Be Honest With Yourself. Taking a good hard look at your financial situation, particularly if it isn't good, can be very difficult. Yet, to get out debt you have to fully understand what the situation is.

3. Find the Errors. Believe it or not, up to 40% of all credit reports have errors in them. If you find that your credit report shows something that is not true, you need to write to them with all the details. Be sure to use certified mail so that you can keep track of who you wrote to, when you wrote, and who received the mail on the credit bureau's end. Then ask the credit bureau to send a corrected report to anyone who has requested a report on you in the last 6 months.

4. Find the Omissions. By law, you are allowed to add information to your report that you believe will help your rating. This might be additional information about a repayment of a loan, good credit you have with companies that do not report to the credit bureau, or salary increases.

5. You Must Have a Plan. Whether you determine to pay your bills down little at a time, take a second job, go to credit counseling, or file bankruptcy, you need to make a plan and stick to it. In order for your credit to be improved, you have to have a plan and then take action!

6. Talk to those that you owe. Creditors want their money. They do not want you to default (quit paying). In fact, most creditors will work with you to get a reduced payment schedule. If you can keep them from reporting you to the credit bureau, then it won't hurt your credit. The catch here is this: be sure to stick to the new negotiated plan â€" they won't renegotiate if you fail to comply.

7. The Best Cure is Time. Have you ever heard the saying 'time heals all wounds'? It also heals your credit. After 7 years, most items will be dropped. This is good news if you are working to correct your credit. As each year passes, more and more bad items will drop off and more and more good items will be included. Eventually, the disease will be cured.

Follow these steps and you will find that your credit looks healthier and healthier each day. Eventually this path will lead you to full recovery. Good Luck!

And here is another random article you might be interested in...

Delegate or Drown

Why waste your precious time working on tasks, which are definitely not your forte when you can delegate or invest your money on a product or service which will free up your time? You can then focus on the more important areas in your work and your life.

Debbie's Story

Debbie was the Director of her own computer company, employing four staff.

Debbie had a hectic lifestyle. She worked long hours, had three children and a husband to organise and on top of that was in the middle of a major renovation of her own home. To make matters even worse, she was also studying for a Bachelor of Computer Science!

No wonder she was stressed out!

Here was a situation where she had overburdened herself unnecessarily. She had far too much going on in her life and something was about snap!

Debbie was unable to sleep properly with all the worry and strain of juggling everything and had neglected her own self in the process.

Debbie looked tired and haggard when I first met her. She was 15 kg overweight and looked at least 10 years older than she really was. She had lost touch with what was really important to her. Debbie was trying to be superwoman!

She had taken on far too much and was forced to review her lifestyle (or lack of it) or she would either have a nervous breakdown or die in the process.

The Solutions

In working with my clients I always get them to write down all the activities and responsibilities they are currently involved in, both at work and home.

By writing them down you can clearly see what is really important and what isn't. You can also see where you fill up your day with unnecessary activity.

With Debbie there were many areas where she could free up her time to give her the time for herself as the number one priority and get some sanity back into her life.

Before Adding, Look at Subtracting

I suggested to Debbie that she needed to look at which activities and responsibilities she could defer, delete, delegate or outsource.

This is what she chose to do:

Defer her Computer Science Degree until the following year.

Organise a building company to project manage her home renovation. Up until that time she had been organising the whole project on her own!

Hire a babysitter with a car who could pick her kids up from school and run them around to their activities. The babysitter would also cook the dinner and do other light domestic duties.

Utilise her bookkeeper much more by delegating to her basic administration tasks, which she was very capable of doing. Her bookkeeper was only employed three days a week and was delighted to work an extra day assisting Debbie with other tasks.

Attend her local gym at 6.00 a.m. three mornings a week and once on the weekend. She also sought advice on her diet.

Within four weeks you could see the change in Debbie. She was more confident now that she has taken control of her situation. Her life was getting back on track!

The Final Word

It's really easy not to invest money in yourself.

Do you spend money on your car, your computer, your business, your home and other 'things' in your life?

Are you not worthy enough to invest in yourself? Is the price you pay for neglecting yourself really worth it?

What can you defer, delete, delegate or outsource so that you can have more time for living your life?