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How to Repair Your Credit

Restoring good credit will increase your chances of receiving a better mortgage loan. It takes dedication, patience and time, but you can improve your credit history over time. Above all, don't give up. Follow these steps to get your credit back on track:

1. Prepare a realistic budget. Note: Skip to step 2, if you completed the practice using the cash flow calculator and savings worksheet.
   
   
2. Make a list of all the debts you owe. Be sure to include creditor names and addresses.
   
   
3. If you're overdue on any bills, contact your creditors right away.
   
   
4. If you have savings, consider using it to pay as many bills as you can.
   
   
5. Consider selling some of your assets with cash value.
   
   
6. Consider getting a second job to pay off your debts.
   
   
7. Consider other sources of money, such as borrowing from your retirement account (as a last resort).
   
   
8. It is always a good idea to visit a financial planner and/or a non-profit credit-counseling agency.
   
   
9. Be diligent about monitoring your credit report.

More Credit Repair Tips

After completing the steps above, there are still more things you can do. Click the suggestions below to learn more about each.

• Try to re-establish credit with former creditors.
• Consider offering security on a loan.
• Consider opening a secured credit card account.
• Open a co-signed credit account.
• Don't open new credit accounts unless the terms are acceptable.
• Don't be afraid to ask for help.

Now you know how to repair your credit should you need this. The next section will describe how to protect it.

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