1.) Get a copy of your credit report, you should be requesting a fresh copy annually to ensure that there are no errors even if you believe you have great credit. If you do find a mistake be sure to contact the credit bureau(s) right away by mail to request the item be removed. You should also like contact the creditor that supplied the incorrect information to the credit reporting agencies as well.

2.) You are able to dispute errors as mentioned in step one on your credit report. How ever the items do have to be actual errors, for instance if there is debt listed on your credit report, and it hasn't yet been paid off you cannot dispute that item in an attempt to repair bad credit. If you're suffering from outstanding debt start paying it down right away, starting with the highest interest rates and moving downward.

3.) If the debts you hold are just to overwhelming to manage/payoff then seek assistance from a credit counselor (usually a non-profit) ASAP. They will help you work out a repayment plan, or debt consolidation agreement. It's not the nicest choice when trying to repair bad credit, because it prolongs your poor credit score, but it is the safe way to go about it.

4.) Any credit cards, department store cards, or gas cards that you don't need get rid of them. There are temptations to spend more money on credit and take away from the funds you have available to pay back what you already owe. Don't be someone who consolidates their debt only to rack it back up again while they're still paying down the loan.

5.) Ensure your paying down your loans and outstanding debt as fast as possible. What ever arrangement your credit counselor negotiated with your creditors is going to help repair bad credit and establish a quality credit history for you again. Use spare money to pay extra on debts if available, and stay up to date with mortgages, rent and utility payments.

6.) It's now time to start rebuilding your credit history again. You want to apply for a new credit card, if you have difficulty getting a regular credit card try applying for a department store card or gas card. Once you have this card start charging some items to it, be sure to only spend what is within your means each month on the card and pay it off in full every statement. This will help establish a positive credit rating for you again.

Few Closing Tips to Repair Bad Credit

Even for people that are sure they have a stellar credit rating I still urge you to request a copy of your credit report at least once each year. This will allow you to fend on the side of safety when it comes to your credit score and history, and catch items that might become big problems before they ever surface.

It is a shame but most of you suffering from a bad credit history probably wish this is a process that could be completed a lot quicker. The fact is that if it could be done quicker would you learn anything? Would you be better established to manage your credit and repay debt? Probably not, this is why a credit counselor is best to work with. He/She can arrange agreements with your creditors because they know that getting something back is better then writing it all off and sending it to collections.

One last tip, sort of a last but not least point. Don't apply for credit everywhere. This will only make you look more desperate to banks and lenders when you might really need the money. Each time a request to review your credit report is made it shows up on your credit history, this is then counted against you in your FICO score, so be careful who you allow to pull your credit bureau file.