Rebuilding Credit For Free

If you’ve found yourself in a bind with bad credit, then I’m sure you know just how difficult it can be.  You might have had a chance at a home and lost it.  Or, the car of your dreams might have passed you buy because you couldn’t get a loan.  Also, you might have had to go home from college early, because you couldn’t get a school loan.  There are lots things that a bad credit score can impact, but that is not the purpose of this article.  This is not here to depress you, but to give you home.  The real question is, “How do I fix my credit on my own?”

 

“Credit-Repair” Services

 

If you want to rebuild your credit, you have probably heard and seen hundreds of ads saying that they can rebuild your broken credit and pay off debt for you, if you follow their “proven and effective system”.  Right. First, get your free annual credit report.

The problem is that some of these credit-building systems end up telling you to go into bankruptcy in order to pay off your debts.  Going into bankruptcy can destroy your credit and make you untouchable to many banks and even certain careers for years and years afterwards.  This might seem like a quick fix, but there are very serious ramifications.

Unfortunately, these programs will make you pay for this advice.  Now, you don’t have any money already, so how will you pay them?  We’ve been asking this same question for years.

 

Repair Your Credit On Your Own

 

This method is called Rebuild Credit DIY (do it yourself).  This system is the most tried and true method of getting out of debt, but do be warned that it is not a walk in the park.  It requires budgeting, saving, and limiting your current lifestyle.

“DIY” stands for “Do It Yourself”.  DIY credit repair systems are free, of course.  This system follows a few simple steps.  Of course, we said, “simple” but we didn’t say “easy”.  Here is the basic overview of what you want to do.

 

• First, you need to save some emergency money and then put it in a safe, bury it in your yard, suspend it in the attic, just as long as it is nowhere in sight for it to be a temptation.  This should be no less than a grand.  The reason for this money is that when an Murphy strikes, you don’t go back into debt
• Pay off your least credit card first, and then “snowball” from there.  This will not only give you motivation, but it will also save you the interest mathematically.  This part will require you to do all you can to save and budget, and it should not take you more than six months.  If you go longer than that, you will not have the motivation for going foreword.
• Pay off your other car and student loans.  These loans do not give you any equity, and your car only decreases in value over time.  As opposed to a mortgage, your other loans are dead weight.

 

Once you do these things, you will be able to Rebuild Credit DIY.  Using the Rebuild Credit DIY system will enable you to pay off debt, build long-term wealth, and avoid bankruptcy.  Oh, by the way, you won’t have to pay us for this advice.

 

Posted by: on Feb 21 2012 | No Comments