If you have found that your credit is less than perfect, there are ways you can repair it.  You can:

• Repair the credit you already have
• Build up your credit rating by taking out new loans and paying them off in a timely manner
• Wait for the bad credit time limit to pass

Many people are not aware of it, but repairing your credit yourself is often easy to do.  To begin, you will need a copy of your credit report from one of the three credit bureaus.  Look over the report to see if you notice anything that may be wrong or unjust.  Then you will need to write a letter to the lender explaining why you think this item is wrong or unjust.  They have up to 30 days to respond to your dispute.  If they don’t respond in a timely manner, the bad credit may be removed from your history.  All disputes will not be easily solved, but remember that there are mistakes made that can be removed.

Building better credit will be easier.  You can simply take out new loans and pay them back on time until they are paid off.  By paying your debts on time, it shows lenders that you are a responsible customer.  It will help offset any bad credit that appears on your credit record.  New loans can also be used to help people who do not have bad credit, but simply little credit history.  Just taking out a few small loans and repaying them in a short time can be helpful to your credit history.  But, keep in mind that if you miss any payments, you are further harming your credit history, so do not take out any loans you are not 100% sure you can pay back in a timely manner.

Of course, waiting for you bad credit to go away is an easy way out, but it isn’t very industrious.  It takes seven years for bad credit to clear from your record.  Once that credit history is removed, you will have to begin to build you credit again.  It is well worth your effort to try to repair your credit rather than wait the seven years for it to clear.