A Do-It-Yourself Guide for Rebuilding Your Credit History

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A Do-It-Yourself Guide for Rebuilding Your Credit
History
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• In this presentation well talk about several
  steps that you can take to gradually rebuild your
  bad credit history even without hiring the
  services of a certified finance expert. Here are
  4 steps towards credit standing.

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Obtain copies of your credit report.

• It is very important that you order copies of
  your annual credit report before you start
  developing a plan to rebuild your credit history.
  After all, this will not just give you the chance
  to determine what your current credit rating is.
  More importantly, it will help you identify the
  credit accounts that you need to settle
  immediately. By knowing how much you still owe
  your lenders or card issuers, it will be easier
  for you to draw up a repayment plan that is
  well-suited to your financial capability. At the
  same time, youll know where exactly you should
  start in your quest to regain your
  creditworthiness.

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• Obtaining your credit files also involves closely
  examining the documents youll receive to catch
  errors. This is because outdated accounts,
  incorrect payment details, unauthorized charges
  and court judgments that are more than seven
  years old can inflict further damage to your
  already poor credit standing. And thats not all.
  Such records can drive away prospective lenders
  and card companies, which will surely make it
  harder for you to get a line of credit that you
  can use to rebuild your credit history
• So, find time to review all the transactions
  listed on your annual credit report. And in case
  you find errors, make sure that you dispute them
  as soon as you can. That way, you can look
  forward to receiving a corrected document that
  can help you come up with a suitable and concrete
  plan to push your credit score up and to recover
  your financial health.

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Draw up a debt repayment plan.

• This might require you to make the necessary
  changes in your budget. After all, if you wish to
  pay off your financial obligations in the
  earliest possible time then, you should free up
  funds to increase the payments you make on your
  personal loan or credit card bills.
• To succeed in this matter, you may need to cut
  down on some of your unimportant expenses for the
  month. Consider which products or services you
  can live without. Then set aside the funds you
  will save on these items to your debt repayment
  plan. In so doing, it will be much easier for you
  to juggle your credit payments with your personal
  or household expenses and bills.

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Avoid incurring new forms of debt.

• A debt repayment plan would only work to your
  advantage if youre willing to avoid incurring
  new forms of debt. This means that you should
  avoid using your online store credit cards
  guaranteed approval to pay for your purchases or
  bills. You should also avoid applying for new
  lines of credit, unless youll use them to settle
  your debt, once-and-for-all.

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Stick to good credit habits.

• It is very easy to fall back on your poor credit
  habits once you have completely regained your
  creditworthiness. However, you should remember
  that losing control of your personal finances
  will cause you to fall into new debt traps which
  will cost you your good credit standing. So, to
  maintain your excellent credit score, you should
  resolve to stick to the responsible credit
  activities that helped you recover your financial
  well-being. By doing so, you can avoid inflicting
  damage to your credit history. And, more
  importantly, it will help you protect your
  financial prospects.