I Need to Fix My Bad Credit - How Do I Do That?

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We all dream of riding nice cars and living in beautiful houses but how can we do that with bad credits attached to our names. The present recession in the financial world has made matters even worse as money and huge investments have been lost. Everyone is affected and it takes a lot to maintain a good credit. Having a good credit is important because if you need to get a loan or have someone invest in your business.

Fixing a bad credit does not require much; you would only need a bit of smartness and some persuasive skill to get the work done. The first step you have to take would be to remove all bad accounts from your credit file. Before you do this, confirm that the bad accounts all belong to you by writing to any of the bureaus. Ask them for proof that the accounts are yours. If they can not prove it, they would have to eliminate them as stipulated in the Fair Credit Reporting Act. This is a common occurrence so I expect that about 50 points should get added to your score by the time they are done.

You would now need to pay up all your debts (if you have any). You can consolidate the debts and pay them off at once or you can come up with a payment plan and pay the debts in installments. Either way, ensure that you clear all debts attached to your name as soon as soon as you can. When you have this done, remove all accounts with bad history from your credit file and make sure you enter the ones with perfect history.

You would also have to make sure that you pay up your bills on time and avoid debts, foreclosures and late payments.

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Source by Charles Bennard