Poor credit impacts your ability to move forward with your life.

However, there is hope -- you can repair your credit with a few steps and re-open those doors to access lower borrowing rates and other benefits once more.

Use the following advice to help you improve your credit rating.

Look into credit counseling if your credit is a wreck.

If you are willing to learn, you will walk away capable of paying your bills each month and still keeping a bit in your pocket for fun.

This will involve eliminating all credit cards and paying each of your creditors on a monthly basis.

You may want to seek out credit consolidation programs if you find improving your credit scores difficult.

Consolidate and Save

If you consolidate your debts into one payment, it makes it much simpler to budget and track your expenses.

This makes it easier to meet your repayment commitments on time and will help get your credit score up.

Lower Your Limits

Call your credit card provider and request that they lower your limit on your cards.

Not only can this tactic prevent you from getting yourself in over your head with debt, but it can also imply that you are responsible to those companies and to any future companies.

Paying your bills is something you need to do to repair your credit.

On Time Every Time

To help your credit, you should be paying the full amount owed within the time allowed.

Your credit score will begin to increase immediately after you pay the bills that are past due.

Check the Detail

When attempting to improve your credit, you should go over any negative marks with a fine tooth comb.

You could find mistakes in dates and other factors which can cause the whole item to be removed from the report.

A Quick Fix

If you need to build up your credit score quickly, try buying something on credit and then paying it back fast.

This way, you show that you know how to handle money and that you're committed to doing it properly.

Live Within Your Means

Don't spend more than you make. You you need to rewire your thought process.

If you're buying flashy items to boost your reputation, consider that a smart person who isn't being chased by collectors will have an even better reputation!

You should look at what you can afford to spend, before using credit for purchases.


If you are having trouble making payments, then you should contact the creditors to work out an alternate plan.

A creditor will often times work in conjunction with you to find a plan that they do not report to a credit score if you get a hold of them.

As a bonus, this will relieve a bit of financial stress, letting you target accounts where backup repayment programs are not obtainable.

You should be truthful with debt collectors and see if they can work with you. Tell them the amount you are able to pay, and when you are able to make the payments. Remember that they will negotiate.

Wipe out your debt

Creditors will look at your debt to income ratio. High debt-to-income ratio indicates a borrower that is high risk.

There are many people who are unable to immediately pay off their debts; in this scenario, make a payment plan and closely follow it.

Avoid Bankruptcy

Bankruptcy should be a last resort and will reflect on your credit report for the next 10 years.

It can be tempting to just go ahead and file bankruptcy to get out from under the debt, but the detrimental effects can be long lasting.

Filing bankruptcy makes it difficult if not impossible to get anything involving credit, like credit cards and loans, in the future.

Prepaid Cards

Build your credit back up if your current credit scores are low.

Prepaid credit cards can be a good way to raise your FICO score, away from the dangers of late fees or charges for exceeding your credit limit.

By doing this you will be proving to potential lenders you are credit worthy and capable of paying money when you are required.

Talk Directly

Talk to creditors directly to figure out a different way to pay your bill if you cannot afford your monthly payments.

In many situations, a creditor is going to be willing to work with you. By doing this, you will now be able to focus on debt accounts that don't give you the freedom of establishing a payment plan.

Explore the possibility of consolidating debt in order to simplify your repayment process.

Many times, consolidation is one of the best and fastest ways you can bring down your debt and improve your credit. This lets you put all your debt under one monthly payment.

Find out more about consolidation and how it could be applied to your situation.

Credit Counselors

Make sure you do your research before deciding to go with a particular credit counselor.

Some counselors truly want to help you, while others are untrustworthy and have other motives.

Some are just people trying to scam you.

Wise consumers always verify that credit counselors are legitimate before dealing with them.

The most obvious way to get your credit repair journey going is to pay down those pesky credit card balances.

Always pay off the card with the highest interest rate first and then work you way down.

Beginning to pay your credit card balances off will show creditors that you are making a valiant effort and are credit worthy.

Addressing a bad credit report might seem daunting at first, but if you learn the tricks and stick to the process, you can improve your credit dramatically.

With the tips above, you are better prepared to take action and get your credit situation back where it should be