“How can I fix my credit?” is usually the question that comes to mind when you are being turned down for a loan, home mortgage or insurance that you desperately need.

However, it could be that you are confused about the details on how to fix your credit and performing credit repair.

Here are several steps that you can take in order to repair or rebuild your credit.

1. Make sure that you know what is in your credit report by getting a copy of your report from the three credit agencies every year. Review these reports for accuracy and determine if there are erroneous entries that led to a poor credit score.

2. Contact your creditors the moment you realize that you will not be able to make the payments on time. This helps in working out a schedule of smaller payments to fit your budget. Be honest about what you can and cannot afford.

3. Make a budget of your income and your expenses every month. Determine how much money goes to leisure activities and eating out and then figure out how much you can set aside every month to carve down your debt.

4. After determining how much you can pay for your debts, make sure to pay them on time every month and pay extra on the lowest outstanding balance that you have. Keep in mind that total debt outstanding comprises almost one third of your credit score.

5. After negotiating with your creditors, get all agreements in writing, which is a great means of defense against lost records, changed minds, new management and other things. After paying off your debt, make sure to get a settlement letter and send a copy to the credit bureau to update your report.

6. Refrain from using too many credit cards and stop charging. Furthermore, you should also keep paying at least a minimum on everything and you will eventually get them all paid off. Keep only one card available try to use it infrequently.

7. Make on time payments as much as possible. Never arrange a for a lowered settlement account that you cannot follow since this could only negatively affect your credit. Remember that payment history is the number one factor in your credit score.

8. Close one or two accounts every six months or more. When you have decided which accounts you have to keep open, make sure to keep the one or two oldest accounts, which comprises the third biggest factors in your credit score-the length of your credit history. Having five accounts with zero balances on the four and $500 on one account could lower your credit risk compared to a having two accounts with a $250 balance for each account.

Keep in mind that living with a bad credit can be very stressful, thus, you should take all necessary measures to minimize and keep your debts low. Take positive action and change your view towards money. The tips above could put you on your way to debt recovery and fix your credit.

Author Bio: Learn more about our top rated company Sky Blue Credit or read more credit repair articles.

Category: Finances
Keywords: Fix my credit, fix your credit, repair my credit, repair your credit