I've got a good one for you; stop me if you've heard this one before. A guy walks into a bar and says to the bartender, "I fixed my bad credit in 24 hours."
Ha, ha, ha, I love that one!
If you missed the punch line, let me explain while everyone else is catching his or her breath.
Repairing your credit is a long and drawn out process and there are no shortcuts. You must be patient and persistent. Anyone who tells you otherwise is trying to sell you something.
Once you make up your mind to take a serious effort at repairing your credit, here are some steps you can follow to help you stay focused.
- Get your debt under control – You can not start to rebuild your credit until you are able to pay your regular monthly bills on time.
- Order your credit report from all three credit bureaus – Getting all three reports will give you the clearest picture of what's affecting your credit score.
- Dispute all inaccuracies on your credit report – If there are errors on your credit report, file a dispute with the credit bureau and the creditor that provided the information to the credit bureau. You do not want other peoples mistakes dragging down your credit score.
- Obtain new credit – While paying down old debts, look to obtain new credit to start adding positive files to your credit report. If you get a credit card only spend small amounts and pay off the balance in full each month. If you get a loan, make your monthly payments on time.
- Save some money – As soon as you can possibly afford to do so, save some money for yourself. Start out with whatever you can afford and work your way up to ten percent. Saving equals responsibility on your part in the eyes of creditors.
Remember, there are no quick fixes when it comes to credit repair. You have to put in an honest effort and be patient. If you can do that you'll really start to see your dreams come true.