Fixing bad credit is a long-term process and requires appropriate strategies to increase your credit as quickly as possible. Possible to reach the rank of excellent credit rating on their own by following these strategies:


Strategy # 1: Get everything in writing including credit dispute letter and hold accountable reported positive

Artillery: Pencil and paper, Microsoft Word or any other writing software or typewriter, and postmarked on

Writing is a powerful skill that can be used in "fixing bad credit" of the plan. Some people prefer to use their phones to communicate with the credit bureaus and creditors. In most cases, the credit bureaus and creditors prefer that their clients are in the form of writing. For example, a credit bureau is likely to respond to the letter of credit dispute their customers that they call by phone.

The same applies if you order reported positive accounts from creditors. If you have an account in good standing who is not on your credit report, it is best to consider positive, informed as soon as possible. In fact, the more positive accounts reported, the faster you can fix your bad credit score.

This is what you should do:

Look for signs written a letter of credit dispute and has reported positive letter of application, respectively - Note the format of the letters
Project the content of a piece of paper and the content must be as specific as possible
So ended his letter as Word document or you can write it out using a typewriter
Once you have made the two letters, so send via registered mail to acknowledge receipt

Strategy # 2: debt, frugal lifestyle, and start practicing healthy habits, spending

Artillery: Cash, Microsoft Excel or Quicken (or any other software related personal finance)

Skills needed: self-discipline or strength of mind, thrifty

It is necessary to spend extra money or personal funds to pay its debt consistent. Some people have to work two jobs or taking freelance jobs to earn more money to pay off their debts. Besides, you need to learn to stretch their dollars by spending your money wisely on things that you really need.

It is also necessary to have a habit of tracking your daily expenses, which is probably done using Microsoft Excel templates Budget software or Quicken personal finance management. This is what you should do:

Look for part-time or a separate line of work through Craigslist, Elance and oDesk
Always pay your bills on time - is recommended for use online as reminders of Google Calendar, Mint.com, etc.
Search more online resources about starting a frugal lifestyle - ie, blogs, social networking sites, online forums provide valuable saving tips.
Track your expenses using Excel templates money management, or software Quicken or Mint.com - a free service based on the personal finance software is also available for iPhone and all Android phones.
Keep balances low on your account - Make sure your credit utilization is less than 5%

Strategy # 3: Getting bad credit loans and apply for secured credit cards

Allies: non-bank lenders, banks, credit unions

Artillery: Secured cards, department store and gas cards

Borrowing is the most effective way to rebuild your credit, but you need to understand the risk that if not paid as agreed. However, it is difficult to obtain loans from traditional banks, if you have low credit scores. So you need to borrow bad credit non-bank lenders. Be sure to find a loan product that has a low APR with a reasonable monthly fee.

The cheapest way to fix bad credit is using a secured credit card. For example, you can get a secured card deposit only the minimum amount - $ 100 ie - $ 100 in your account. Making regular payments on time, the credit agencies recognize your account in good standing, and your card will become the normal warranty card after over a year of timely payments. This is what you should do:

Start applying loans from banks first (although the chances are very slim) - If all requests are rejected by all banks, then proceed through the same process in the application of credit unions. Non-bank lenders are the last resort and make sure they get high scores from Better Business Bureau (BBB).
Get a secured card is easy and you can only use the card for everyday purchases - You can increase your credit score if you continually make payments on time.
Apply for department store and gas cards, your insurance card when it has become an unsecured card. Again, you must use these cards wisely to increase your credit limit.

By combining these three strategies in the "fixing bad credit" of the plan, you will be able to achieve its goal effectively FICO score.