The current recession has caused many people to wind up with bad credit. Most of these problems can be traced to a job loss that left many people unable to pay their bills. Once they get back on track many of these people are wondering if there is anything they can do to fix their credit and re-establish themselves.
The answer is yes you can fix your credit and the article below will go over some basic tactics that anyone can implement that will boost their credit scores quickly and put them on the road to financial recovery.
What You Need To Do First To Repair Your Credit
While it sounds pretty basic the first thing you are going to need to do is try and settle up some of that old debt that may have gone to collections or that was charged off by the lender.
Many collection companies and even lenders will be more then willing to work out a repayment plan with you. Just remember to get everything in writing and never give anyone access to your bank account for auto withdraw, always send them a check!
The Easiest Way To Re Establish Credit
Next, once you have some of your old debts out of the way you need to address the concern of getting new credit to help prove that you are responsible and also to add a some good credit history to your credit report. While this may sound hard to do when your FICO scores are low and your credit is terrible, it is really quite easy.
The best way to do this is to apply for a secured credit card. With a secured credit card you give the lender a cash deposit that is equal to the account limit. This is normally $250-$500 dollars. IF you default on the card the lender can take what you owe them from this balance.
These cards are great because they protect both you and the lender, are easy to get and will report on your credit report the same as a normal credit card.
Clear Up Old Information
No mater what you do when you go through financial problems and hardships you will have negative information on your credit report that will continue to drag your credit scores down. The best way to get rid of these items is to do some credit repair.
There is no need to pay an expensive credit repair service to do this for you. If you can read and write you can fix your own credit, all it takes is time, effort and the right system to guide you!
Important Advice For Doing Self Credit Repair
The process of Self Credit Repair is a fairly straight forward and simple process if you have the right plan to follow. However If you go into it unprepared you run the risk of failing or damaging your credit further. To avoid hurting your credit you should get a proven Credit Repair Guide.
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