Credit repair is fixing errors in your credit report, making payments on time or early, and doing anything you can to raise your credit scores. Bad credit makes it difficult to get loans or to get loans at better interest rates and terms, and it can hinder you from renting an apartment, getting a job, or even buying some things.

First you need to see what’s being reported, so get a copy of your credit reports from one or all of the three credit agencies: Equifax, Experian, and Trans-Union.

Scour your credit reports for errors, then send a letter to each credit bureau for each creditor that has supplied erroneous information, and send any evidence you have.

When the credit report is correct, you have to work to improve your credit scores by making payments on time or early, and paying down your balances. Sometimes, you can talk to your creditors and get them to give you a deal allowing you to pay what you owe in easier payments. Another way is to consolidate your debts into one loan, with lower interest, so you have lower total payments.

If any creditors agree to this, make sure you get it in writing, so you have proof of the terms, in case they argue later..

If you have problems talking to creditors, you can hire a credit counselor or credit repair company to act as mediator. Credit arrangements can offer a lot of benefits like lower payments and lower interest.

Credit repair usually takes time and you should be ready to make sacrifices and cut your expenses. If you aren’t earning enough, you might have to sell some of your valuables and assets.

Sometimes it’s hard to pay loans, when you still have to pay for other things like a mortgage, utilities, food, transportation, insurance and other bills. You have to take care of everything at once, so it’s hard to focus on credit repair, but you really don’t have a choice because the situation will never get better unless you work on it..

While you’re repairing your credit, you can still use your credit card, but you should try to pay off new purchase at the end of the month, and cut down the balance, if possible. Just make sure you don’t max it like before, and try to reduce the balance every month, because your total debt contributes about 30% to your credit score.

Once you improve your credit score, keep making payments on time or early, whittle down balances, and keep your expenses down, so you have extra money for credit repair. Sometimes, applying for either a department store credit card or a secured credit card can improve your score.

Unless you house is about to be foreclosed on or you’re levied for a judgment, filing for bankruptcy is not a good option for credit repair. because the bankruptcy will stay on your record for 10 years and meanwhile, interest will accumulate and what you owe will just grow.

The credit repair tips mentioned above are simple to follow. Once you correct your credit reports and start paying down your debt with payments on time or early, keep working at it and you’ll soon see the benefits.

So, get your reports to analyze your situation, then work to make payments on time or early and pay down balances, so you can get better credit, then make sure you don’t make the same mistakes again.