By – Joseph Nykoluk

If you have a credit problem, then your first step in repairing your credit is to just set a goal to solve it. Without setting yourself a goal, how can you ever hope to achieve that touchdown. Before you can solve the problem you have have with your credit, you must first recognize the fact that you do indeed have a problem and that you need to solve it.

Once recognized, you need to start considering all the factors you will need to start building up your credit. Don’t be afraid of credit, but don’t be complacent about it either. As with many things in life, there will always be Good, Bad and Ugly aspects of Credit. Much can be written on the advantages and disadvantages of having credit. Where good credit can help you get out of an emergency situation, it can cause you a lot of stress, and if you abuse or mismanage the credit that you worked so hard for you can lose…well…EVERYTHING.

All of us struggle through life at some point, some struggle more than others. Through human frailties, there may be many reasons we have a flawed credit rating. If we neglect or forget to keep on top of it, we end up paying for it. Someone once said that getting to the top of the mountain is much easier than staying there. Building a good credit rating is really not that hard but as you use that credit it slowly and relentlessly becomes harder and harder to maintain.

To get started repairing your credit rating you need to start searching for various methods to help you restore that credit.

Step 1 – Obtaining Your Credit Report

The first thing for you to do is to start getting copies of your credit reports. Under normal circumstances, the disadvantage here is that these reports will need to be purchased. Unless you can pay with cash, these reports may need to be paid using your credit card. Sometimes we just can’t win, can we? If you can pay by cash, ordering a credit report online may possibly be paid using PayPal.

Of course, you may not have to pay at all if you apply for a credit card or even a loan. However, be sure to avoid applying for cards and loans if possible, because the more you apply the more it affects your credit rating.

Once you apply for a loan or other credit, your lender will request copies of your credit report, which adds points to your credit score and it stays on your report for around 3 years. The more points you have, it takes away from your score, which is more important than your credit. Once you apply for a credit card or loan, then the advantage is that you are able to get all 3-credit reports for free.

It is very easy to apply for credit today and advertisements abound in just about every type of media. However, you must remember that this ease in applying for credit comes at a price. As noted above, that price is the effect your credit score will have every time it is checked by lenders who are so eager in giving you that credit.

So, the next time you want to apply for a loan to buy a vehicle or a ring for your better half, be aware of allowing any sales people from checking your credit, unless you are sure that your credit rating is in good standing. You may even wish to bring along your own updated credit report with you when applying for that loan. If the lender tells you that they cannot accept your report and that they need to check it themselves, then just tell them that they cannot check your credit unless you are sure that you want to apply for the said loan.

Next:  Part 2 – Acting on Your Credit Reports

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Filed under: Credit Repair

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