Top Ways To Rebuild Your Credit

By: Tom Tessin

When you have bad credit it can affect your life in more ways than one. Because of this you need to start repairing your credit. You have probably heard of credit repair programs you pay $20 a month or so and they fix your credit for you. But, what they aren't' telling you is they can't fix your credit without you doing everything that is necessary for this to happens. That means you are basically paying them to tell you what to do. If that is what you want to do, then that is okay, but there is no reason to pay someone to do something you can do on your own. The following steps will help you repair your credit as long as you follow them.

Review Credit Report

First of all, you need to review your credit report. Doing this will give you a good idea of what your credit score is, what bad marks you have on your report, and any information that shouldn't be there. Many times people have information on their credit report they shouldn't have. This could be because someone's information was reported wrong, because of identity theft, or even from old accounts that should have been removed from your report. When you go over your credit report you will be able to correct the errors, or have them corrected, and this will help your credit score improve.

Pay Debt

Another good way for you to repair your credit is to pay off debt. This is no fun, but it must be done if you really want to improve your credit score. You need to determine how much you can afford each month and pay it towards your credit cards. It won't take long and you will really start making a dent. The more you pay, the less interest will accrue, and the more money you will save in the long run. So, as hard as it is to pay your debt it really is the best thing you can do.

Stop Spending

Another hard thing to do is to stop spending. Many of us feel that if we have any credit left on our credit cards we should be out there buying the things we love. That is not the case at all and the more you spend on your credit cards the higher your debt will go. And, the higher your debt goes the lower your sore will go. When you are approaching your credit limit it looks bad to lenders and will bring your score down.

Don't Apply for Credit

Finally, don't apply for any credit. This may be hard if you are used to applying for credit every time you want something. However you must take a stand and stop applying for credit in any shape or form.
If you follow these suggestions you will make major strides in your credit situation and in one year it is likely you will be out of debt and moving on with your life.

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