If you have a bad credit rating, then you might find that



your ability to get financing, loans, and even some jobs is

greatly diminished.

Once you have a bad credit rating, it might seem like

there's nothing that you can do about it but you don't

have to believe that. It's not as difficult as you might

think to get by with a bad credit rating; with a little

work and time you can even repair it! Of course, before you

do that it's important to realize exactly what a credit

rating is.

Every time a lender or other creditor makes a report

concerning your payment history to them, this report

affects your credit score.

Your credit score is a numerical indication of the positive

and negative reports that you've received from creditors

and lenders; if the number is high then you have a good

credit rating, and if it's low then you have a bad credit

rating.

Basic credit repair

Get organized! Make a folder for all your correspondence

offline and online. You will have to do some snail mailing

but in most cases you can work your repair online.

In the U.S. a 630 rating will qualify you for a mortgage.

You can still get credit with a lower score but not at a

premium interest rate.

In fact, even a chapter 11 bankruptcy (erases all negative credit)

is not as bad as many think. I am not advocating filing for

bankruptcy (the laws have changed so you might have to

set up a re-payment schedule if your income allows) but for

those caught between a rock and hard place, unemployment,

medical crisis, divorce...many good reasons for finding yourself

unable to pay your bills, filing for bankruptcy is a god-send.

Many times, you will find creditors very eager to extend credit because

you don't have any debts! It is the irony of the debt-income picture...

if you have a steady income, you will have no problem getting credit

cards, auto loans and even a mortgage.

So, don't despair, your situation is not as bad as you think! You will

find a way to less worry, more sleep and better relationships.

To begin correcting your credit, the important thing to do is obtain

your credit report and study it. Mark all the negative items.

Most unsecured credit, mostly credit cards, can stay on

your report for 7 years. If you find any over that, write

to the credit bureau and ask them to remove it. They are

required by law to research and report back within 30 days.

If they don't, you can threaten them with a letter to the

Better Business Bureau or Federal Trade Commission.

Find any other negative items and determine if they are

correct. If not, write the bureau and tell them its not

your debt.

Even if you aren't sure, ask the credit bureau*s to

investigate. Many times, they will not be able to verify

the debt because the credit card company, auto loan company

or other creditor won't get back them within 30 days

(required by Fair Credit Act).

For the contact information on credit bureaus as well as

samples of letters to send to them, go to:

http://www.repair-credit-right.com

You may freely reprint this article provided the following

author's biography (including the live URL link) remains

intact:

About The Author

Dan Farrell is the creator of Repair Credit Right!

With Tips, Articles And Credit Resources To

Help You Restore Your Credit.

http://www.repair-credit-right.com