Credit Repair Tips

Credit. Does this word put fear in your heart or make you smile? Credit doesn't have to be some elusive magic black box. It's really very simple..........so they say.

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How many of you started your young adult life this way: Turned 18, received all these wonderful offers for credit cards, thought you could pay them off quickly because you have a really great job at the local fast food place.

You and probably 80% of America started this way. I have had many young people come to me full of debt and empty of hope.

Here are some key things to do if you find your credit out of control.

1. Check your credit at least once a year. Some people don't know that they have this wonderful tool at their disposal. http://www.annualcreditreport.com/. This site lets you receive a free credit report once every 12 months. There are no gimmicks or free trial things to deal with. By using this yearly credit report, you can stay on top of errors in your credit or if a place is not posting your credit or simply be alert to identity theft as quick as possible. Don't think that identity theft wont happen to you. According to the Fair Trade Commission it happens to 9 MILLION Americans each year. Yeah, it's that bad.

2. To increase your score, pay your bills on time. This is the most important way to have a good score. It sounds simple but when you are struggling, it can be the hardest. Tip: pay credit reporting items first. (car, house, loans). You don't have light in a house the bank forecloses on.

3. If you miss a payment, get current and stay current. You can always start over. Did you know that with most bills, if you pay before the next payment is due it won't go against your credit? Check with each bill provider to see what their policy is. Think of your credit as your "word". Not paying is the same as lying.

4. If you have credit cards, use them wisely. Credit cards are not the enemy. Our spending habits are. To increase your credit score, keep your balances at least one-third of the balance available. Pay as much as you can each month if you can't pay it off.

5. You can control how much your credit card limit is. One good way of controlling your spending is to keep your credit limits low. You can request that your limit stay at a certain amount. I keep mine at $300. I know, without a shadow of a doubt, that I can pay or borrow this amount if I get into trouble. Always think about your credit as if you may lose your job tomorrow. How can you get rid of your debt fast?

6. Look to the experts. Guys. There are LOTS of smart people out there. Don't reinvent the wheel. Really smart people find a process that works and they copy it. Here are some credit or debt-free gurus. Dave Ramsey ( I know this guys strategies work. I sold a house to one of his "now debt free" followers. Jean Chatzky (Seen on Oprah) and a local financial planner (always ask for references, years of experience and interview more than one. They hold your future in their hands.)