If you are in credit card debt and have no where to turn, then you might want to look into diy credit repair. Do it yourself credit repair will involve a large time commitment on your part but in the end it will certainly be for the best and you can expect results if it is done correctly. If you are not a fan of the diy method their are other ways to get out of credit card debt. These mainly include filing for bankruptcy which may be an inevitable option depending on the severity of the debt you have accumulated, or seeking out professional assistance from someone who specializes in repairing credit reports and scores.
If you decide that you want to try and repair your credit report on your own, then the first thing youll need to do is collect all of your credit cards, receipts, and bills and file them properly. You want to have quick access to anything anyone could ever ask for if you are on the phone and the person needs some sort of information, of you want to bring something to their attention. Once you have all your ducks in a row its time to start calling creditors. The goal here is to cancel the card, see if their is any way to reduce the interest rate for the duration of the pay off period, and ultimately pay off the debt.
The best way to repair a credit report is the costliest way and that involves paying everything off in full. If you cannot afford to pay off everything or it looks like its going to take you until your 102 to get it paid off, then bankruptcy is your best option. Its certainly not what it used to be, but it will set you up with a payment plan, keep you from going into debt further, and give you a clean slate.

After almost 20 years in banking and finance, I feel very lucky that I know how to fix my credit should the need arise.  Today, I would like to share some of my top strategies with you.

Handle Disputes via Certified Mail

Many people fall into the trap of handling their disputes by certified mail.  While this can be convenient, it is not the best way.  Instead, you should handle everything you do with regards to your credit via certified mail.  This ensures that you have the paper trail to you need to more on to more advanced strategies.

Keep Good Records

Speaking of advanced strategies, one of the most important thing you can do to ensure your success is keep good records.  Make a copy of every letter that you send out and hang onto your return receipts.  If you do speak with your creditors by phone, make sure that you keep a detailed log that includes the date, time, who you spoke with and what was said.  Most creditor report their phone calls for “quality assurance” purposes, so having the time and date information can be very helpful should their ever be any dispute as to what was said.

Be Persistent

Unfortunately, many people give up way to quickly when attempting credit restoration.  They make it through one round of disputes and then decide that it is not working or that it is too difficult.  Those that stay the course learn that you sometimes have to dispute accounts more than once and that very often, you have to move onto other strategies before your credit is fully restored.  Above all else, you should expect credit restoration to take some time.  The good news is that with time, persistence and a little work, there isn’t a credit file out there that can’t be repaired.

Let’s  be real with each other, a low credit score will basically hurt you in every facet of your financial life.  For example, If you’re trying to obtain a home loan, car loan, or student loan, it will be almost impossible to be approved for a loan with a decent interest rate. Also,  with a low credit score banks even make it pretty hard on you to borrow money for emergency purposes.

Now, one of your financial goals should be to always pay everything off immediately and not use credit cards if at all possible,  unless an emergency arises.

Furthermore, a low credit score can have an adverse affect when applying for jobs, getting car insurance, or evening renting a car…

So it is important to rebuild your credit?

I think it is, and I have provided some quick tips how you can rebuild your credit in less than a year…

1. Always pay your bills on time.  Make this your top priority. Pay them a week early so that you are SURE that they arrive on time. If you literally do not have enough money to pay them off on time, you need to either find other ways to generate income, or negotiate with your credit card company for a lower payment. For example you can start selling some personal items on Ebay, getting a part time job, or  liquidating some assets.

2. Get a secured credit card and ALWAYS pay it off on time. Charge very small amounts and then pay them off. You can carry a very small balance if you want – $10 or $20 – but NEVER make your monthly payment late. After a year of on time payments, call the creditor, and request to the  card to an unsecured credit card.

3. A Low Debt To Equity Ratio. Make it a priority not to charge more than 25-30% of your available credit. If you have charged more than 30 percent of your credit limit, then you should make it a priority to pay that card down first.  The rational behind that is your credit score goes down when you have less available credit.

So as can you see rebuilding your credit to worthy credit score is definitely attainable and needed. By following the steps above you can rebuild your credit in less than a year.