Rebuilding Your Credit: Path to Cheaper Borrowing

Rebuilding your credit can be a great technique to take control
of your future. Face it - to live in today's world, you need
access to credit, and you need it cheap. Unfortunately, lots of
people have ruined their credit because of hard times or bad
decisions when they were young. There's still time, however, to
put things right, no matter how far in the hole you are.

First, you should pay off the debts you have now. Begin making
regular payments on all your debts, no matter how small - this
will often keep the creditors from reporting you as delinquent,
and you can usually work something out with them. At this point,
they've probably written you off anyway, so they have nothing to
lose. Don't sacrifice to the point that you're living in a hovel
with fleas , but do
tighten your belt.

Second, you should get new credit, and make sure you're making
small monthly payments. Don't go wild - you just need to keep a
few hundred dollars in debt outstanding each month. Pay the
fees, and don't spend any more money. You'll gradually pay it
off, and build your credit in the process.

Third, if you have any old debts you never paid off, repay them
on the condition that it gets reported to the credit agencies.
This will please your old creditors and make you look good to
anyone considering you in the future - they'll at least see that
you're making an effort.

Finally, don't do the things that got you that badly into debt
in the first place. No payday loans, no heavy borrowing - live
within your means, and stay there.