Are you tired of being denied loans and credit cards because of your credit score? It can be quite embarrassing to apply for a mortgage loan or a car loan or a credit card and get your application denied because of a poor credit. If you have a bad credit history there are ways that you can fix credit to make it look a lot more attractive to lenders. You will have to be very disciplined in doing these things in order to ensure that you do not start slipping back down the hill and end up in debt again. This is not where you want to be. You want to fix your credit history but also get out of debt for good. If you have been living with a load of debt over your head, you know that living in debt can be very stressful, so the sooner you can get yourself out of debt and fix your credit the less stress you will have in your life. And less stress means a better life!

The first step that you will need to take when you are fixing credit is to get a copy of your credit report. This is fairly easy to do and there are a couple of good reasons to start with this step. First, you need to understand how bad the problem is. If you are just getting denied loans but don't know exactly why or how bad the reasons are you don't know how big a hole you are in. Also, statistical studies have been done that show that a large percentage of people have errors on their credit that they do not even know about. When you get a copy of your credit report you should check thoroughly and verify that everything on it belongs to you. If you spot any errors while you are looking through the report there are things that you can do to fix those errors.

One of the things that you can do to fix a credit report is write the credit bureau that you obtained the report from and ask them to fix any misreported errors that you find. By law they have to investigate any errors that you report and provide you with a response within 30 days. If no response is provided within that time period you have the right to have the error wiped off of your credit report. Another thing that you may have to do is contact the creditor who gave the information to the credit bureau. Credit card companies and departments stores and even mortgage lenders make mistakes, they have computer accounting glitches or reporting mishaps and they can mix your information up with someone else's information. If this has happened you need to know and make the creditor aware of the problem. They have no obligation to look for problems until somebody brings it to their attention. This will help to clear up any misunderstandings quicker.

The next step to fix bad credit is to look at what kinds of debts are listed on your credit report. If you have any outstanding debts listed you will want to pay them off as soon as possible. You will want to make a list of all of the outstanding debts that you find on your credit report, and beside each debt you want to put the interest rate. You will want to be sure to pay the debts with the highest interest rates off first and then pay the ones with the smallest interest rates last. In other words, even if you are behind on payments, you need to focus on the debts that are getting you deeper into the hole that you are in first. These high interest debts are the priority to pay off first and fastest. You should try to stay current on all of your debts, but if you have extra money at the end of the month apply it to the highest interest debts. The longer you put off paying debts with high interest rates the more interest you will have to pay, and that makes it harder to pay off the principal that you owe.

The third thing that will help you fix credit history is consolidating your unsecured debt. This is not for everyone, but if you are looking at the list you made of outstanding debts that you owe and are feeling a little bit overwhelmed then take all of those payments and roll them into one payment. There are companies that specialize in this kind of debt consolidation and you can find them by looking in the phone book for debt consolidation companies or debt reconsolidation companies. You can probably also find information on the internet. If you decide to go this route, you will have one payment to pay each month, you may be able to get a lower interest rate, and you can extend the life of the debt over a longer period of time to get a lower payment. If this brings you current on your debt payments and allows you to stay current, this will help your credit history a bunch in the long run. However, as with all financial transactions, make sure you understand what you are getting into, read the fine print, and make sure any fees that are charges or rolled into a new loan are fair and reasonable.

A forth thing that you will want to do to help fix credit is to cut up all of your credit cards. Close all of your credit accounts that belong to the cards that you cut up. You will never learn how to fix your credit if you are tempted to put yourself in more debt by using your credit card. If you plain and simply do not have the option of using a credit card, you will either do without the thing that you thought you needed, or if you really need something you will find another way or save for it in advance.

If you are trying to figure out how to fix credit problems without the money that you need to pay off all of your debts you may want to consider the possibility of picking up a second job. If you are determined to get out of debt and fix your credit you may have to deal with some difficult circumstances for a little while until you get your debt paid off. You can also go through your home and find items that you do not need anymore and sell them. There are a lot of ways of getting the extra money that you need, and if you are creative enough you will find a way that will provide you with enough income to help you pay off your outstanding debts.

Once you have repaid all of your debts you will need to do a few things differently in your life. You will need to be sure to pay all of your bills on time. This will help you to build a good payment history, and will show that a creditor will get their money on time if they give you a loan. You will need to create good spending habits that will help you to stay out of debt by staying away from purchasing things that are not necessities. You will be able to fix credit if you follow these steps and take charge of your money.