Rebuilding Your Credit Is Possible

Online, October 12, 2011 (Newswire.com) - It's not impossible to live with bad credit, but it's certainly not easy. Having bad credit makes things extremely difficult, if not impossible. Insurance companies can charge a higher interest rate for drivers that have bad credit. Utilities companies will charge a higher deposit for those whose credit is less than stellar. And a bad credit score can certainly mean higher interest rates on car or mortgage loans, if you can qualify at all.

But you can recover from bad credit. Credit repair is crucial - it will mean you can save money on insurance, loans and credit cards. Good credit scores can open up job opportunities, a new business venture and loans when you need them with less hassle.

If you pay attention to the advertisements on television, it seems you need to hire an expert to repair your credit. But this is not necessarily the case. But you do need to know what needs to be fixed before you can begin. This is why you should get a copy of your credit report, and review it carefully. You can obtain your credit reports from each of the three credit reporting bureaus for free, once a year. Be sure you get a copy from each bureau, as the information can vary.

Look each report over carefully, checking for incorrect information, past due accounts that are late, charged off or sent to collections, and maxed out accounts over the credit limits.

Once you've identified these items, make a plan to fix them. For the errors you find, be sure to ask in writing for them to be removed. Work to get current on the accounts for which you are past due, and pay accounts that are already charged off or in collections.

You can work to reestablish your credit by opening a new account. This can be a new credit card or even a retail store card. You may wish to consider a secured credit card, which requires you to make a security deposit in order to get the card. Once you have the new card, you can make purchases and pay the balance in full, on time, every time, in order to rebuild your credit.

Keep in mind that there are specific things that will hurt your credit score. These include paying late, not paying at all, having an account charged off, defaulting on a loan, filing bankruptcy, having your home foreclosed, and getting a judgment. A judgment shows you not only avoided paying your bills, but the court had to become involved in order to make you pay the debt.

By keeping these things in mind, you can and will rebuild your credit. Don't forget, though - it took time to mess up your credit, and it will take time to rebuild it as well.