“What’s in your wallet?”
“There are some things money can’t buy.  For everything else, there’s MasterCard.”
“It’s Everywhere You Want to Be.”

Yes you guessed right, these are the ad slogans of leading credit card companies.  Swipe here, swipe there; swipe it anywhere!  It is convenient to have credit cards but gruesome to pay accrued credit card bills.  The result:  bad credit.  If your credit is ruined, how do you repair it?

Ways to Repair your Credit

You messed up your credit, you can fix it yourself!  There is nothing that a professional debt consolidation company can do that you can’t.  You don’t have to be a genius to be able to mend it.

The first thing that you need to do is know what you actually need to repair.  How?  Get free credit reports from the three credit bureaus:  Equifax, TransUnion and Experian.  Get all three because your report on each one may vary.  Not all of your credit transactions are reported in one bureau.  Have a clear picture of your credit history.

Upon furnishing yourself with copies of the reports, review them.  Chances are, there’s at least one mistake in each report.  This happens because the bureaus no longer double-check the reports submitted by creditors.  Inaccurate information is easy to fix (albeit it can be tedious and time consuming), but the legitimate negative ones are the real challenges.

If you aren’t fond of late payments, start a new habit.  Pay on time!  Avoid applying for loans as if there’s no tomorrow.  Design your own financial plan.  If you have past due accounts, make them “current” or get them paid.  Request for restructuring of credit, e.g. reduced monthly payments, altered due dates or extended repayment schedule.  This will allow you to stay “current” and save your rating.  The rule of thumb is to keep your revolving debt to 50%, max, of your available credit.  Whatever new agreement you may come up with, be sure it’s in writing.

For inactive credit accounts, close them slowly.  It’s tasking to maintain a number of credit lines.  Be cautious though because closing may likewise negatively impact your credit score.   Make sure these closed accounts are labeled “closed by customer” to ensure a good report.  Open savings account so future creditors will think you have reserves to settle your dues.

Past delinquencies will definitely affect your future credit applications but keep trying.  Apply with only one major credit card.  This way, your credit inquiries will be low.  If you get denied, try applying for a department-store credit card.  If you remain out of luck, consider getting a secured credit card.

Additional Pointers

Save whatever you can!  Don’t wait for past due accounts to be charged-off.  Remember, charged-off accounts stay in the report for seven years while bankruptcy remains in your report for 10 years.  However, if you seriously think you need professional help, then, you may want to consider undergoing “consumer credit counseling.”

You are capable of repairing your own credit.  All things are reparable – your credit included.  Of course, credit repair does not happen overnight.  It is always easier to ruin than to repair your credit.

Thanks for reading this quick credit repair fix – credit repair how to.

- Guest Contributer, Melony Smart