Bad-Credit Repair Information

Bad credit can cost you money in higher loan interest rates. Negative credit information such as bankruptcies and judgments can remain on your credit report for up to 10 years, according to an article on the Tennessee Department of Commerce and Insurance website titled "Improving Your Credit the Right Way." But with the right bad-credit repair information, you can take the steps to improve your financial situation despite past challenges.

Free Credit Reports

Each American consumer is entitled to one free credit report every 12 months from each of the three major credit reporting agencies, according to the Federal Trade Commission website. The Federal Trade Commission offers a website to consumers where they can obtain all three credit reports with one online form (see resources). Consumers can also call 877-322-8228 to order their free credit reports if they do not have access to the Internet.

Credit Report Analysis

To repair your credit, you need to make sure the information on each of your credit reports is accurate. Once you receive your credit reports, analyze them carefully for any errors in your personal information and in your credit accounts. If you find an error, you can use the dispute process outlined on each report to submit a request for changes, according to Dani Arthur, writing on the Bankrate website. Keep copies of all of your correspondence with the credit reporting bureaus in case your dispute is lost, or the credit bureaus make an error in executing your corrections.

Monitor Credit Usage

You can use your current credit accounts to help repair bad credit. Do not cancel old credit accounts, because established credit is helpful in repairing your credit score. Pay down your credit accounts, and feel free to use them, but do not allow your balance to exceed 30 percent of your available credit, says Liz Weston, writing on the MSN Money website. Maintaining credit, and keeping a large portion of your available balance open, are important steps in repairing credit.

Debt Management Programs

Consumers looking for bad-credit repair information may see information from debt management programs that promise to repair your credit score quickly or eliminate your credit card debt fast. It takes time and good financial habits to repair credit. There is no way to accelerate the improved health of your credit score, according to the Tennessee Department of Commerce and Insurance website article entitled "Debt Management Plans." By paying your credit card minimum monthly payments on time and in full, you are taking practical steps toward your own debt management program. The programs that advertise the quick elimination of your debt usually rely on bankruptcy as their solution, and that is a step that you should only consider as a last resort and after a consultation with a legal professional.