Repairing Bad Credit Create an Action Plan

Pretend for a moment that you're going to go on a road trip - a trip out with the fam for some fun and entertainment. In order to plan the best possible route for that trip, you would need to know a couple of things - you would need to know where you're going and you would need to know where you're currently at. When considering your credit card and credit repair situation, you essentially need to know the same two things - where do you want to go (new mortgage, refinance, out of debt, etc.), and where are you at currently (credit card debt, late payments, other obligations, etc.).

• Have you defaulted on a loan?
• Have you failed to pay taxes?
• Have you been reported to a debt collection agency?
• Do you have too much debt?
• Do you have too many unpaid bills?
• Have you filed bankruptcy
• Is your credit history sketchy or two short?

The problems that influence your credit situation should guide your course of credit repair. Your credit history can account for more than a third of your total credit score. In credit scoring, your past truly does equal your present. Whether or not you have been a good credit risk in the past is really considered the best indicator of how you will react to debt situations in the future. For this reason, loan defaults, late payment, bankruptcies, unpaid taxes and other debt responsibilities will count against you the most. You can’t do much to change your financial past, but by paying your bills on time you can certainly boost your credit score for the future.