Bad credit is no joke! Keep reading and you will discover how you can begin taking the steps to repair and restore your blemished credit history and raise your credit scores.

At this writing, the credit market is tight. Even those with excellent credit are having problems getting loans at favorable rates. Therefore it is very important that you begin improving your credit profile and credit score.

Low credit scores can prevent you from acquiring things when your cash is tight. Poor credit can also increase your cost of living, because you generally end up paying higher interest rates on loans and higher deposits on rental property.

Bank lenders and finance companies have become very selective and conservative with regards to their lending practices.

Even in lean times banks and other lending institutions still need to make money...and they make money from interests on extended credit.

The benefits or good credit...

- Greater borrowing power. - Lower interest rates. - Lower credit card interest rates. - Lower deposit amounts on rental property. - and much more.

You have two options when it comes to credit repair. Do it yourself or use a credit repair service. Keep in mind that good credit repair services don't come cheap and you want to be sure to find an honest service that will do what they claim.

If you choose to do it yourself, you will save money and gain knowledge that will serve you well for a long time to come. If you do decide to take the do-it-yourself route, you must have the proper tools and knowledge to do an effective job. The steps below will get your started and headed in the right direction.

Getting Started

Your first step is to obtain copies of credit reports from each of the three major credit bureaus. Equifax, Experian, and TransUnion are required to provide you with a free copy of your credit report upon request once every 12 months.

Visit annualcreditreport.com to request your free annual credit reports. If you have taken advantage of this option within the last 12 months, the consumer reporting companies will charge you up to $10.50 for each copy of your three credit reports.

If you are thinking the next step is to dive in and start removing all the negative items from your credit bureau files...think again. This strategy could actually lower your credit score! Your second step should be to add a few positive records that will help raise your debt to credit ratio. You will learn more about this when you visit the DollarSqueezer website.

Disputing erroneous and outdated items is the third step. Begin by targeting the most damaging items on your credit reports. You want to request the removal of only one item at a time from each bureau report. Once your dispute of the first item is resolved, move on to the next item.

Keep in mind...no one can legally remove accurate negative information from your credit reports. The Fair Credit Reporting Act (FCRA) allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete at no charge.

The time to begin improving your credit history is now.