How Can I Repair My Credit?

Congratulations! You realized you had a debt problem and you took the steps necessary to get those debts paid off. Now it is time to see what you can do about restoring your credit.

The best way to restore your credit is to apply for new credit and make your monthly payments on time. Over time, as you keep making your payments on time, you will see your credit score increase. This may sound easy, but before you get to this point, it is important to be sure that your financial situation is stable. Make sure you have reliable employment, that you have sufficient income and that your debts are under control. With anyone of these things not stable you could be asking for trouble and more negative credit history.

Negative credit history may remain on your credit record for as long as seven years, but the more time you put between it and your positive history, the less attention lenders will pay it. The longer you maintain good credit, the easier it will become to get credit. Keep in mind that cleaning up your credit record is going to take time.

Do not jump at the first credit card offer you get. Evaluate the terms of the offer. You will get a lot of high risk offers with high interest rates and high annual fees. It is best to stay away from any card with an annual fee or anything that is secured with property. If it is secured with cash, that is different. The most you stand to lose is the cash you secured the credit card with.

You want to inform the credit bureau of any unreported positive payment history that is not listed on your credit report. The credit bureau is not obligated to record the history, but it does not hurt to try. You will not be any worse off than you are now. If the credit bureau does choose to include the history, it can only help your credit.

If possible, submit an explanation of any negative credit on your report. Once again, the credit bureau is not obligated to include this information, but in the majority of the cases, they do. If you became delinquent because you became unemployed due to an unexpected layoff or you had unexpected medical expenses, the credit bureau should know this, especially if this is the only time your payments were delinquent.

Following these steps will help you get your credit record back in good shape. Remember to be patient. Your credit history didn't become a mess in one day and it will not be fixed in one day. Also, the single best thing you can do for your credit is to make your payments on time, consistently.

Marjorie Salada is the owner of debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.