Repairing Bad Credit: Three Essential Steps to Take

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The first step to repairing bad credit, is to find out exactly how bad it is.  Get a recent credit check.  You can get a recent pull by going to the Equifax building (in Toronto it is at Young and Finch).  You can get two free pulls per year.  If you are not in Toronto, you can always go to Equifax.com and pay for a full up to date copy.  Make sure to check it closely, as sometimes there are mistakes.  If there is incorrect information on the report, make sure to get this fixed as soon as possible.

Now that you know where you are at, its time to start fixing it.  Review all of your bills and debts.  Can you afford all the payments on time? If not, try to negotiate partial payments with your lenders.  As you continue to make regular payments, and you debts and bills are getting paid off, close all unused credit accounts.  Keep just a couple to start re-establishing your credit.

When I say keep only a couple cards, I mean only a couple - Don't keep too many!  You need two revolving accounts to establish credit, not more.  The key is to always keep balances less than 30% of your credit limit and not to be late on payments.

Don't expect repairing your credit to be automatic.  It takes time - probably six months to a year.  Seek a professional who specializes in credit to guide you in the right path.  They will be able to tell  you what you need to do and how to fix your bad credit as soon as possible.

Sincerely,

Astra Mulawka
Better Homes and Gardens
Real Estate - Signature Service
Office:905-896-4622