5 Simple Steps To Start Credit Repair On Your Own

Credit repair takes discipline and can take a long time, but you can do it on your own. You owe it to yourself to take steps towards improving your credit as soon as possible.

In this day and age, good credit is one of the most important things you can have. Almost anything you do, from purchasing a car, a home, renting an apartment, and sometimes even applying for a job requires an extensive credit check. There are many of us out there who don't have perfect credit for any number of reasons, whether it be loss of employment, unexpected expenses, or just plain naiveté. Below are five easy steps designed to help you begin the credit repairing process on your own.

Step one is to get a copy of your credit report. There are three credit bureaus you can do this with: Experian, Eqifax, and Trans Union. There are many states that entitle you to one free report a year and there is a new federal law being put into effect in stages that allows for the same thing. Do some research on the internet or call one of the bureaus directly to find out the laws in your state. You can decide whether to get a report from each bureau, or only to get one now and perhaps one later. Your credit score will not necessarily be the same with all three bureaus.

Step two is to determine what your particular weaknesses are (according to your credit report). Are you paying your payments late? Do you have too many open lines of credit? Are all your lines of credit maxed out? All three? Each person will have a different reason why they have bad credit in the first place and will have different means as a way out. Pinpoint your weaknesses and make a list of the different options available to you. This leads us to step three.

The third step is putting a plan of action into place. There are many different options. If you are a homeowner, one option is to consolidate your bills into your mortgage payment. This lowers the high interest rate you are probably paying on all those credit cards and other miscellaneous debt, makes the interest tax deductible, and eases the burden of having so many monthly bills to remember. Another option is to transfer all your small credit card balances onto one low interest card.

Step four is to try and decrease your expenses and increase your income. This can be difficult, but there are many small ways you can try this. The obvious is to seek higher paying employment. Not an option? Bring your lunch to work everyday, shop at discount clothing stores, forego the nice restaurants. When you start asking yourself if you really need it, or is there some way you can get it cheaper, or is it more important than repairing your credit, you will be amazed at what you are willing to do and the difference it can make.

The final step is to stick it out! You must be very disciplined. Pay all your bills on time every month. Don't pay a bill late because you would rather do something else with your money. You need to make a budget so you do not overspend one week and then are out of money the next. If you consolidate your bills, do not under any circumstances run all your credit balances back up.

In the end, it will be worth it. Knowing your credit is under control will give you a much needed sense of accomplishment and ease your stress level tremendously. It is a slow process, but don't get discouraged. Credit repair is possible for anyone.

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