If you have bad credit, you are not alone. Most people today have blemishes on their credit report. There are occasions that the bad credit record is due to an error. Regardless of how negative items appeared on your credit report, you can get rid of credit problems and restore a good credit record.

Waiting on a bad credit to fix itself is definitely not the best option. There are many things you can do to restore your credit rating. Repairing your credit is not as difficult as you might think. It requires some time, but you can do it.

All the information you need to do it yourself are covered in my ebook "How To Clean Up Bad Credit And Establish AAA-1 Credit Rating." You can check it out at www.aboutcreditrepairadvice.com and www.howtocleanbadcredit.com.

When you apply for any type of credit or financing, lenders review your credit report to determine whether you are a good credit risk. They rely on your credit report to see if you qualify for a loan or credit.

Your first step in the process will be to order a copy of your credit report from the credit bureau so you can see what type of records they have on you. Believe it or not, mistakes occur at the credit bureaus. Review the report to learn first hand what needs to be fixed.

If there is an error, contact the credit bureau to have the error removed. Dispute every single item that is erroneous in the report. The credit bureaus are obligated to investigate all disputes requested by consumers. Once the credit bureau receives your dispute, they must investigate it and inform you of the results of the investigation. They must provide you with a corrected copy of your report.

Credit is based upon past, present, and future character. Your personal financial conduct is the critical tool used in judging your credit worthiness, for it is the measurement used to determine if you can be trusted with someone else's money. Being a responsible credit card holder can save you thousands of dollars over the years and provide opportunities that may not otherwise be available to you.

Nearly every purchase or consumer action taken today is monitored and recorded by someone. Whether you want to buy a car, house, cell phone, boat, clothes, insurance, or a new television, having good credit will greatly increase your ability to purchase. A responsible credit card holder never steps up to the checkout counter in fear that their credit card may be declined. There are several ways to become a responsible credit card holder. Let's look at the simple ways.

Pay your bills on time: By paying your bills on time you establish that you are a good credit risk. It can also save you hundreds of dollars in late fees. Some credit card companies charge as much as $29 each time your payment is late. If you your account ever goes into default the issuer may raise your APR because they now believe you are a greater credit risk.

Don't pay the minimum amount due: By paying only the minimum amount due it may take years to pay of your debt. It can also cost you thousands of dollars in interest that you could have had working for you. A $2,500 balance may end up costing you nearly $10,000.

Pay a fixed amount each month: If you are making on time payments your minimum payment amount should decrease slightly each month. If you can afford it, pay a fixed amount each month that is higher than your minimum amount due. For example if you minimum amount due is $50 than pay $60 or more each month, even when your minimum payment amount begins to go down. Be sure to choose a fixed amount you can pay each month so that your debt will decrease much faster.

Never skip payments: Always contact your credit card issuer if you are unable to make a payment. You may be able to make some type of payment arrangement that works for you both. Sometimes credit card issues will give you the option to skip a month if you have a good payment history. Remember, whether you pay or not your finance charges will still apply for that month. It is always best to continue paying your fixed amount.

Use cash advances sparingly: Only use cash advances in true emergency situations. Cash advances can run up your overall debt extremely fast. Some credit card issues can charge from 2 to 4 percent cash advance fees. For example a cash advance of 5,000 with a 4 percent cash advance transaction fee would cost you $200. Credit card issuers also charge higher interest rates for cash advances. It is no coincidence that there is a higher rate of default among cash advance users.

Choosing the best secured credit card for your situation is no simple task. There are literally hundreds of issuers offing secured credit cards. Before selecting a secured credit card you will need to remain mindful of the reason you are applying. Be sure to select the secured card that will best match your financial situation such as your income and your ability to repay.

A secure credit card works nearly the same way as an unsecured credit card. You are responsible for your line of credit and you make monthly payments on any balance you have acquired. Just like unsecured credit cards, your secured card may carry application fees, interest rates, finance charges, and annual fees in addition to any late fees and penalties you may incur. Your secured credit card will require you to deposit security funds into an account to be used as collateral for use of your card.

In most cases, secured credit cards carry higher interest rates and annual fees than unsecured credit cards. There are finance charges based upon a percentage of your current balance. As with unsecured credit cards, you'll want to choose a secured credit card with low interest rates, and low fees.

Most reputable secured credit card issuers will pay you interest on any security funds you have deposited. The interest rate you will earn on your security funds can range from 1 to 4 percent. You will want to consider the interest rate the issuer pays based on the amount of money you deposit. For example, if you deposit $100.00, the amount of interest the issuer pays may not be of great concern. If you deposit $1000.00 the interest rate the issuer pays may require careful consideration. Keep this in mind when making your choice.

One of the most important aspects to consider may be credit agency reporting. Does the secure credit card issuer you have selected report to a credit agency? You must remember the main reason for having a secured credit card is to establish or re-establish credit. Please select a secure credit card issuer that reports to the credit agencies. You want your account information to show up on your credit report as paid or paying as agreed each month. It is also important to select an issuer that does not report your account as secured.

When selecting a secured credit card it is important to be mindful of secured credit card scams. There are many unscrupulous individuals and companies that will take advantage of you and your financial situation. Some of the signs to watch for are 900 numbers and misleading information. Avoid the offers that read, "Bad Credit, No Credit, No Problem... Just call 900-555-5555." Chances are you will be charged unnecessary phone charges and could end up paying hundreds of dollars for useless information. You can also avoid being scammed by reading carefully. There are some companies that purposely leave out information about deposit amounts, application fees, and other processing fees so be sure to read the terms and conditions carefully when selecting a secured credit card.

So you had a financial crisis happen to you, well believe it or not most people have. But it is up to you if you want to continue living life in a hole!

Bad things happen to good people. You have bad credit… well that is the past so get over it! You need to make a change now. Don’t look at what happened to you and have it go over and over in your head. Break that broken record. That will only cause more stress then you can handle and additional headaches.

You need to take action now and move forward in your life with a new attitude and eliminate bad credit scores.

Check your Credit Report

Your first step is to pull your credit report to see what the damage is. There are three credit bureaus that collect data on you: TransUnion, Equifax and Experian.

You need to receive a report from each of the three agencies to see what they are saying about you. A lot of times, they have incorrect info on you, but it is your responsibility to tell them.

Each bureau is required to provide you with one free credit report per year if you request. Here is a link to receive a copy of the FREE Credit Report from each of the credit agencies:

Thanks to the Federal Fact Act, consumers nationwide are now able to get annually a free copy of credit report.

Why order for a free copy of credit report?

You credit report is actually your credit history for a period of time. Even though it is just a three-digit number but it has great importance in today's business world. Many money and bank lenders solely depend on your credit report to judge your financial stability to grant a loan. It's quite possible that your credit report may contain some errors and flaws. Remember this small error in your credit report can actually affect your credit history in a big way. In order to overcome this problem you need to get the error rectified as quickly as possible. It's a good idea to request a free copy of credit report at least once in six months.

When are you entitled for a free copy of credit report?

· You are entitled for a free copy of credit report if you have been denied credit
· If you are unemployed and intend to apply for employment within 60 days
· If you are a public welfare assistance
· If you report has been revised
· If you credit report contains inaccurate information due to fraud or theft

It is estimated that at least 48% of consumers have errors in their credit files and 12% of those errors are severe to result in credit being denied. It is unfortunate that these mistakes can actually cause you to be denied a loan, insurance or employment.

Can I get a free copy of my credit report?

· You are entitled for a free copy of credit report if you have been denied cedit
· If you are unemployed and intend to apply for employment within 60 days
· If you are a public welfare assistance
· If you report has been revised
· If you credit report contains inaccurate information due to fraud or theft

How can you fix your credit report?

· Check your credit report at least once in six months and rectify errors in it immediately
· Do not open unnecessary account. It would be advisable to shut down all the unnecessary accounts
· Do not open multiple accounts at the same time. Remember a zero balance account is also taken into consideration.
· Repair your credit report in case of any errors
· Pay your minimum balances before the due date. This alone will fix your credit report

Building credit is essential to living in modern American society. A credit score is used to assess one's responsibility in repaying their debt. A credit score reflects one's credit history, and the numerical value of the score is a function of one's fidelity. A credit history is a detailed record or report on the repayment schedule of one's debts. Basically, your numerical credit score represents your "risk value" -- if a financial institution is going to lend you the money to purchase a high dollar item, they are more likely to "feel safer" lending their money to the person who demonstrates a "lower risk" of ignoring their repayment obligations.

Institutions evaluate credit history, and thus credit scores, when determining how much money and at what percentag rate you are eligible for. Financial institutions use your credit history and your credit scores to finance high dollar items, such as a home, a car, or furniture. While using cash is ultimately the best way to pay items, using cash does not assist in building credit.

One must begin building their credit sooner or later. (The reason why credit must be built is because not everyone has the cash or savings to purchase a house or a car.) Since time is a variable in determining your credit score (time means history), the longer that one demonstrates their fidelity in their repayment obligations, the higher one's credit score is. In other words, always keep the credit card that you have had for the longest period of time, even if it's not used.

Since repayment fidelity is an essential determinate of one's credit score, the dollar amount of purchases plays a significantly less role. In other words, building credit does not necessarily mean purchasing and paying on high dollar amount items. From the point of view of the financial institutions, it means more that one repays the debts that one has. Therefore, if one desires to build their credit, one can purchase low dollar amount items such as CDs and DVDs -- even items that cost less than $1.00. Using your credit card to purchase a single item that costs less than $10.00, and quickly paying back that $10.00, is an easy and inexpensive way of building a credit history. Begin small.

A credit score also factors in the variables of one's income and one's existing debt obligations. Those who demonstrate (1.) fidelity in their repayment obligations, (2.) a low debt-to-income ratio, and (3.) fewer lines of credit, are more likely to qualify for more money lent at a lower percentage rate. In other words, as a rule, one should be earning more money than one sends out on bills. Where possible, discontinue the use of specialied gas cards or specialized department store cards in lieu of one card that offers nice rewards for its use. You're more apt to earn rewards by using one or two cards more frequently than by using dozens of cards less frequently.

Always and forever zero out your credit card balance on a monthly basis. This demonstrates your financial responsibility to the future lenders who will query your credit history.

Obtain a credit report, on an annual basis, to eliminate errors that lower your credit score. This is especially important for a child who shares the name of one of their parents. All credit disputes should be hand written and sent in using certified mail.