Once you have a bad credit rating, it might seem like there`s nothing that you can do about it? but you don`t have to believe that. It`s not as difficult as you might think to get by with a bad credit rating; with a little work and time you can even repair it! Of course, before you do that it`s important to realize exactly what a credit rating is.

Every time a lender or other creditor makes a report concerning your payment history to them, this report affects your credit score.

Your credit score is a numerical indication of the positive and negative reports that you`ve received from creditors and lenders; if the number is high then you have a good credit rating, and if it`s low then you have a bad credit rating.

Basic credit repair

Get organized! Make a folder for all your correspondence offline and online. You will have to do some snail mailing but in most cases you can work your repair online.

In the U.S. a 630 rating will qualify you for a mortgage. You can still get credit with a lower score but not at a premium interest rate.

In fact, even a chapter 11 bankruptcy (erases all negative credit) is not as bad as many think. I am not advocating filing for bankruptcy (the laws have changed so you might have to set up a re-payment schedule if your income allows) but for those caught between a rock and hard place, unemployment, medical crisis, divorce...many good reasons for finding yourself unable to pay your bills, filing for bankruptcy is a god-send.

Many times, you will find creditors very eager to extend credit because you don`t have any debts! It is the irony of the debt-income picture... if you have a steady income, you will have no problem getting credit cards, auto loans and even a mortgage.

So, don`t despair, your situation is not as bad as you think! You will find a way to less worry, more sleep and better relationships.

To begin correcting your credit, the important thing to do is obtain your credit report and study it. Mark all the negative items.

Most unsecured credit, mostly credit cards, can stay on your report for 7 years. If you find any over that, write to the credit bureau and ask them to remove it. They are required by law to research and report back within 30 days.

If they don`t, you can threaten them with a letter to the Better Business Bureau or Federal Trade Commission.

Find any other negative items and determine if they are correct. If not, write the bureau and tell them its not your debt.

Even if you aren`t sure, ask the credit bureaus to investigate. Many times, they will not be able to verify the debt because the credit card company, auto loan company, or other creditor won`t get back them within 30 days (required by Fair Credit Act).

For the contact information on credit bureaus as well as samples of letters to send to them, go to:

http://www.repair-credit-right.com

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