If you want to repair your credit, begin by paying off old debts and correcting any issues on your credit report.   Perhaps you've been tempted by the "credit repair" advertisements you've seen that promise to fix your credit report.  The fact of the matter is that there is nothing you can't do yourself (free!) that a credit repair clinic can legally do (for a fee!) to fix your credit report.  To request a free copy of your credit report, check out the related link below. 

Credit reports provide you with steps to take to dispute inaccuracies on your report at no charge.  Corrections will be made to the report for any errors.  Be aware, however, that accurate information that points to negative payment behaviors will generally remain on your credit report for a period of seven years (bankruptcies up to ten years). 

There are no quick fixes -- only time can improve bad credit. 

To begin re-building your credit history:

1. Start by opening an account at your favorite financial institution.  While it won't appear on your credit report, you may be asked to provide account numbers when completing credit applications. 

2. Next, apply for a credit card. It may be easier for you to be approved for a department store or gas credit card before applying for other types of credit cards, such as a VISA or MasterCard. 

3. Now, begin using your credit card for purchases.  Be certain to pay off the balance due each month.  To make sure you can pay off the balance, consider keeping a record of your credit purchases, just as you do a check register for your checking account.  If you can pay off the entire balance, be sure to pay the minimum payment on time each month. 

4. If you have a hard time qualifying for a credit card, consider applying for a secured card.  With a secured card, you will have a credit limit based on the amount of money you will have on deposit in a savings account.  The card is used the same as any other credit card. 

5. You might want to apply for a secured loan from your financial institution, secured by the money you have on deposit or in the case of an auto loan, the car itself. 

6. You can ask a friend or relative with good credit to co-sign a loan which makes him or her liable for the loan with you. 

7. If you are denied credit, find out why.  It could be your income, job, or credit history.  You can also request a free copy of your credit report.  Be sure to check it for accuracy and report any corrections that need to be made.

As you begin to rebuild your credit, be sure to keep your balances at a manageable level and always pay on time.  Don't apply for every credit card offered to you.  Have patience while you re-establish a record of consistent payments that shows you are credit worthy.