Tips and Methods for Turning Bad Credit Into Good Credit.

Do you have bad credit and you feel like that you will never own a car or a home because your bad credit haunts you wherever you go? This free blog will give you free methods, steps and ideas on how you can turn your bad credit into good credit and improve your credit score. Having a damaging credit record can hurt you in many ways. It may prohibit you from making an important purchase such as a home, car, computer or vacation. Without a good credit report you are severely limiting yourself from possible lenders. If you do find a lender you will undoubtedly be charge exorbitant interest rates far exceeding what recipients would receive if their credit history is in good standing. So how can you fix your credit and your credit score if you've been less than diligent with repayments to creditors? Well contrary to what many advertising scams will tell you, you can't fix your credit or your credit score overnight. In most instances it takes 7 years for a payment infraction to be deleted from your credit report. If you were to file any kind of bankruptcy, it would take 10 years. Obviously fixing the problem before taking such drastic measures is desired. Bankruptcy must be used only as a last case scenario and the implications must be fully understood before proceeding with such severe measure. Besides bankruptcy staying on your credit history for 10 years and posing large problems if you decide to seek out a financial lender, it can also impact other areas of your life. For instance you may be rejected from certain jobs, prohibited from taking on certain responsibilities and positions within your own company if you are a business owner and you will still be in the bad books of the people who you may require to lend you money.
There is no way to fix your credit overnight no matter what the advertisements claim. The bottom line is that if you are faced with difficult financial situation you must first look to fix the problem yourself through using basic budgeting guidelines. If you are not good at this, you may be able to hire a professional personal money manager to do this for you. Next you must figure out what your rights are and try to amend problems before they arise. In most cases, creditors would be wiling to work with you and come up with some repayment alternatives rather than sending your delinquent account to a collection agency. If it has gotten so bad that you have creditors calling your house all the time, you must research what your rights are. Collection agencies are heavily restricted by laws but that doesn't stop some agencies from taking advantage of some less informed individuals. For instance, collection agencies are only allowed to call during certain times of the day and in most cases must cease all calls if you request them to do so in writing.

Below are some very important steps that you can take to significantly improve your credit and increase your credit score. Follow this blog for weekly updates on how you can improve your credit and keep good credit.

1- The first step is to get a free copy of your credit report from each of the top three credit bearueus. You can get your credit report from each major credit reporting agency for free once a year.

2- Next, sit down with your credit reports and go over them with a fine tooth comb. Check off any credit mistakes and anything that should not be on your credit report. Mistakes do happen. Also make sure that no bad credit charges are over seven and ten years old. Sometimes bad credit charges will sit there until you have them taken off.

3- Once you have removed all of the mistakes and past due bad credit infractions, start checking off any and all of the bad credit that you can fix. Such as hospital bills that you owe, loans that you owe and any credit cards that you owe. Take a notebook and write down the name of the institution that you owe the money to and how much you owe them so you can call them and set up a payment plan. This alone will increase your credit score because it will show that you are willing to work with the instiutions and pay off your debt and the credit reporting agencies will notice that.

4- Next, sit down and call all of the institutions that you owe money to. Start with the ones that you owe the most money to. Each institution will be more than eager to set up a payment plan with you so decide on what you can afford to pay each month and set up a payment plan with each past due institution. Most financial institutions will even accept as low as $25 dollars a month as long as they are getting paid.

5- Lastly, now that you have removed your credit mistakes and you have set up a repayment with each past due financial institutions, call the credit agencies and make them aware of the credit mistakes that you have so they can remove them(they will), also inform the credit reporting agencies that you have set up repayment plans with each past due account. They will confirm and increase your credit score. Now, make your payments on time each month and watch your bad credit turn into good credit and watch your credit score increase.

TIP- follow this blog for weekly updates on improving credit, fixing credit and turning bad credit into good credit.