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Credit is a very important part of our existence as Americans. I have often wondered if it is equally as important in other countries as well. In our country, once you blow your credit, you are really sunk. It is sad that is the way it works, but it is. You must be very careful as many people begin getting credit too young, while they are still irresponsible and not financially secure.

Once you have really messed up your credit report, you can try credit repair, but this is not an easy process. There are several steps that you can take to fix your credit.

The first thing that you must do is get copies of your credit report. The best way to do this is to ask for a free credit report, as long as you have been denied for credit in the past 3-6 months, this is a pretty easy process. Make sure that you get your credit report from all 3 of the major credit reporting agencies. These are Equifax, Experian and Trans Union. Some information reported may be different with each of the different agencies, so you want to be sure to take a good look at all of them. Once you receive these reports read each and every item in the reports. Be on the lookout for any inaccurate information. If there is anything that you see is on your report that shouldn't be write a letter to the corresponding creditors requesting a debt validation. If they do not supply you written proof of the debt within thirty days they are required to remove the item from your report and supply documentation to this effect. (I have personally been told to contact all the companies, as any ones that don't respond in the correct time frame must remove the debt off your record, even if it is a real debt of yours.)

After you have eliminated any false information from your reports write down all remaining outstanding debts. Get in communication with any collection agencies that show up on your report and agree upon a payment schedule with each one. Be sure to keep it within your budget. Ask them if they will contact the credit reporting agencies to remove the negative entry once you have paid off the account. They are most often amenable to this as long as you meet your payment commitments.

It will take some work and some time, but these steps will have you back on track soon, and then you can start living the life you were meant to with all the cars and homes that only good credit can buy.