7 Important Credit Repair Tips

Having a poor credit score has big effect on many aspects on one's
life, specifically the financial part of it. Poor credit will effect the
terms that one receives on loans. It
might also even effect whether one lands a job or not. More and more
employers are checking potential employee's credit before extending a
job offer. This may all sound pretty grim if you have poor credit.
However, it is important to note that poor credit does not have to follow
you throughout your entire life. In fact, if you commit to taking certain
measures, you can see a vast improvement of your credit score in as
little as a year. In this article, we will be providing some effective
tips to help you clean up your credit.

1. Take An Honest Inventory: In order to improve your credit, the first
thing you need to do is be honest and take an inventory of your
situation. What credit cards and debt do you really have? Use a spreadsheet
and write it all down. This will help formulate a realistic and
effective plan to get rid of your debt.


2. Use a Pre-paid Debit Card: Pre-paid debit cards are a good way to
make sure that you don't spend more than you have available. This also
means no late-fees or charges from your bank if you bounce a check.
These types of cards also help to develop some discipline. If you don't
have it, you can't spend it, so you will have to become more
responsible in your spending. Not having late fees reported on your credit
report, will also help your rating.

3. Negotiate With Your Creditors: Try to negotiate with your creditors
and see if they would be willing to lower your interest rates or wave
any fees. Many creditors will rather work with you, then to have you
default on a loan.


4. Get A Credit Counselor: If you aren't able to negotiate rate
reductions with your creditors, a credit counseling agency will. They will
also be able to set you up on a fee paying schedule so that you can pay
all your credit cards at once. They will create a payment schedule for
you and you will know exactly when you should be getting out of debt.
And while credit counseling will appear on your credit report, at least
potential lenders will see that you are making an attempt to get your
financial affairs in order. Also, getting out of debt will improve your
credit rating much more then credit counseling will hurt it.


5. Consolidate: Consolidating your debt can be a good way roll your
debt into one loan and make one payment.


6. Get Serious and Commit: If you want to be able to get out of debt,
it will require laser focus and commitment. You have to get serious and
really want to better your financial situation. Repairing your credit
isn't something that you can do half-heartedly.


7. Don't Get Discouraged: The process of repairing your credit will
be filled with some highs and some lows. Don't get discouraged. Keep
forging ahead and being disciplined and you will see results.

Repairing your credit will be a difficult process. It will require that
you to discipline your spending, save and find a way to pay back what
you owe. However, if you buckle down and commit to tackling the problem
you will find that the relief that you experience when you repair your
credit, will be worth any hardship you go through to repair it.