How Fix Your Poor Credit

To get a house, get a car, have a credit card, and basically legally exist in the United States, you need to have credit. And if you want to have the best opportunities for success, you're going to need GOOD credit. Yes, you did see those words 'Good Credit'; it's not an oxymoron - it's quite possible.

A national TV station did a story on credit cards and debt in America, and one of the main findings was that most Americans don't have the slightest clue as to how their credit report affects them, much less repair it. We can help. So we'll help you become aware of what methods work, what methods don't, and what companies to watch out for.

The Myth

They're all over the TV, Radio, and Internet - those ads that espouse: Time to "Re-Fi". Get your credit fully repaired - no matter how bad your situation is. Sounds like a desperate plea for a response, and that's exactly what it is. These companies don't fix your credit, or solve your debt problems, but they DO do something. They charge you incredible fees, and more often than not, cut off all contact with you completing their 'job'. The safe bet, is to follow the tried and true tactics to fixing your report. Look past these sand mirages - they won't be your salvation. You're more likely to end up with a mouthful of sand.

So... What Works?

There are a few different things you can do to fix your credit report, the first of which is to CHECK your credit report. Three companies are EACH required by law to send you your report once every 12 months, at your request. That means if you ask for it from each of them, they must give it to you once a year. A great way to stay constantly informed is to ask for your report from a different company every 4 months. You'll be able to check it 3 times a year this way.

After you KNOW what's on your report, you'll know if you can dispute any of the claims that you find. If you think something is a mistake, if you feel you've been treated in an unjust manner - if you think you can win a dispute, then go for it. Credit Agencies aren't all angels. One woman, who originally owed less than $10 on a credit card, stopped paying her bill. The charges and fees accumulated every month, so she started paying it down, but not before it had reached into the thousands. She paid her bill for over 24 months, and when she saw that she still "owed" thousands, she went to court. The Judge ruled with her, and wiped her remaining debt. What you don't know CAN hurt you, and in the case of your credit report, ignorance is NOT bliss.Do yourself a favor and follow step one: know.

Another thing you can do to repair your awful debt, is simply to pay down your debt faster. There is some pretty helpful information to be had at your local bookstore, if not right here on the Internet. For example, one famous wealth-building author and speaker suggests that you do everything in your power to pay TWICE the minimum amount. You want to do this because you'll incur fewer fees, and each fee will be a smaller charge, as your debt comes down. Even though your minimum payment will also go down - do not change the amount of money you pay each month. If you could afford to pay twice what the balance originally was, don't drop down from that.

So start with the card you owe the LEAST on, and work your way up if you have multiple credit cards. Pay the minimum balance on the other cards while you push to get rid of the smallest balance, and you'll be well on your way. Follow these steps, take the time to learn about your credit report, and do NOT rush to the first agency that promises you: "Your Problems are over!" Because they might just get worse.