Repair Bad Credit : The Do It Yourself Way
Your credit situation may be not so great or even bad. Now you want to know how to fix it. There are no quick-fix solutions but with patience and discipline, you can rebuild by yourself your credit history sooner than you may think.
You may have already approached some companies telling you they can make old debts disappear or help you start an entirely new credit history. But, their plans are illegal and could cause you to commit fraud. You may have already considered credit counseling or a debt repayment plan in order to help you setting up a schedule to pay your debts. However, a debt repayment plan can affect your, already bad, credit status. Creditors may report that your account is in a debt repayment plan and that some payments have been missed. Under the Fair Credit Reporting Act, this accurate information about your accounts can stay on your credit report for up to seven years. Better think twice before entering such plans.
You want to fix your credit on your own? First get a copy of your credit report (you can order a copy of your credit report online). Second plan a credit strategy. Apply for a major credit card and close old unused credit accounts. If you are having trouble getting a major credit card and have no other credit, start small. One way is to apply for credit with a local business, such as a department store, local bank or credit union. These local merchants may have lower credit standards than larger lenders and can help you to establish a track record of paying bills on time. Make sure the credit grantor reports to one of the major U.S. credit bureaus so that you can build your credit history. And finally, make sure to submit all of your payments on time. Lenders give more weight to recent payments, so start by showing that you are a solid credit risk now.
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