If you currently have a poor credit record, securing any type of loan or additional credit can be next to impossible to say the least. Try to get a second mortgage on your home or apply for a car loan and you would be out of luckunless you manage to successfully repair your credit standing. Yes, such a thing can be done, and numerous people have done so already. The rest of this article deals with some of the most effective ways of getting this done.
Right off the bat, we should warn you about all those "credit repair services" that you see advertised on the Internet. Many of those "services" employ unscrupulous means to magically erase any negative points in your credit record, and these methods could open up a whole new set of legal difficulties for you.
Keep in mind that there is simply no legal way that a negative mark on a credit record can be "erased". Your credit report may be improved later on, but your record will still stand. Any attempts to create a new credit "identity" for you should be regarded with suspicion, so the first step is to steer clear of such potential legal traps.
The next thing you will want to do is to obtain a copy of your credit report. In the United States, three organizations provide credit reports to the public, and these are Equifax, Experian, and Trans Union. You can either ask for your credit report from each company, or you may simply get the report from all three companies via annualcreditreport.com.
What many people dont realize is that credit reports can actually be obtained for free. In fact, you dont even need to have someone do this for you, as you can manage it easily enough by yourself. You may even want to get a copy of your credit record periodically whether you have credit issues or not. This will help you keep tabs on your spending and transactions, reducing the risk of costly errors.
Paying off as much of your existing debts as possible will also work wonders for your credit standing. For starters, you should figure out which of those debts you are paying high interest fees for and set your sights on getting those paid off first. This will make it easier for you to manage payments as you go along.
Make sure that you dont neglect your current bills either. Remember that you will want to show a favorable record of payments to creditors, and unpaid bills aren't going to be of much help to your cause. Make it easier for yourself and cut your credit card use to only one or two cards.
It may take a lot of doing, but credit repair is something that is well within your capabilitiesall you need is patience, hard work and a lot of discipline. Keep your goal of becoming debt-free foremost in your mind at all times, and it will soon become a reality for you.