It is not uncommon for someone to go through a bad patch in their life. This could be due to being extremely ill, or have lost their job through no fault of their own. In these situations, people find it very difficult to keep up with any loan payments they may have. Unfortunately there are three major credit bureaus who do not see any harm in telling everybody about your difficulties. However, they only say that you have defaulted on your payments, but do not explain any mitigating circumstances. This ends up with you having a bad credit rating, which in itself makes life very difficult.

There are a few methods that you can use to get around this problem, but do not expect them to work overnight. You might read advertisements where companies offer schemes that will work that quickly, but be very wary of them. The owners of these companies are probably breaking some law, somewhere.

There is a process, which is perfectly legal, where it is possible to change your poor rating into a good one in a short time period. This process is completely ethical, and the result of which will keep your record clean. That is of course, that after gaining your good rating you continue to meet your financial obligations.

The first thing you must do is to get a prepaid credit card. These are issued by MasterCard and Visa, though they are slightly different to normal cards they issue. Your spending limit is determined by how much you have prepaid onto the card. If you have deposited $200 on the card, your limit at that time will be $200. How much you have on the card is insignificant, but you must use the card. It will show on the records that you never reach your limit and that your payments are always on time.

The more of these cards you can get hold of, and use sensibly, the quicker your credit rating will improve. Make sure that the company you are dealing with reports to one of the three major credit bureaus, it would be better if they report to all three of them. By doing this you are ensuring that you are getting a very positive report going on to your file every month.

Another thing you must do is to get into contact with the credit bureaus and get a copy of your personal report. You must get the report from each of them, as they do not share information. This means that the details they have on your credit status could well be different. After you have received these reports, you must read them diligently, and note any errors that you find.

It is generally accepted that you are going to find quite a few inaccuracies. You must itemize these and then contact the credit bureau and get them corrected. It is their responsibility to verify that the information is accurate, otherwise they must change it accordingly, or delete it completely. By doing this, you will be improving your rating, just by making sure it does not look worse than it really need to.

Improving a bad credit score will take some time so you must be patient. It will take as long as it needs to, but it will work. Once you have got your credit score on an even footing, it is time to put into practice what you have learned during the bad times. You will then feel that you have rejoined society.

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