Bad credit can influence many aspects of daily life. New credit applications for homes, credit cards, and automobiles can all be difficult to obtain if one has a credit history that is less than stellar. Fortunately, there are a number of ways to begin immediately repairing bad credit.

The first thing to do if bad credit is suspected is request a credit report. There are several companies that will provide this service for free. Review the information and if there are any errors take steps to resolve it immediately. Next, call the individual creditors and find out if there is a way to begin a repayment plan and if they will resubmit the information to the credit bureau.

For all current credit debt, you should begin making regular payments at the appointed time. Habitually having late payments negatively affects credit. Paying promptly positively affects credit. Having multiple credit lines available can lower a credit rating. If able, it is advisable to pay off and close some credit accounts. If it is not possible to pay them off and close them, write a letter requesting the credit limits be lowered. Having too much available credit can also damage a credit rating.

If the number of credit accounts makes it impossible to make the monthly payments, then consider a debt consolidation loan. By obtaining one larger loan it is possible to pay off most, if not all, of the smaller loans and have fewer monthly payments. A credit counselor can also be contacted to aid in establishing a repayment plan. Often credit counselors will have access to information that would be more difficult for a consumer to obtain and they may be able to better negotiate with lenders.

Consumers who have declared bankruptcy and now have no credit may want to consider either a secured credit card or finding a friend or family member to cosign for a new credit card. For a secured credit card, a deposit for the amount of the credit line desired will need to be made, or possibly a bit more. While this does require an initial investment, consumers are able to pay off the balance monthly which improves their credit score. It may be possible to obtain an unsecured credit card with a friend or relative. This would not require an initial deposit and may provide a larger line of credit. However, payments will affect the cosigner’s credit as well as your own, so it is especially important to make payments on time.

Finally, while paying off any credit balances and trying to reestablish new credit, it is very important that no new debt is acquired that would be impossible to pay off each month. While making steady payments on new credit can improve a credit rating, acquiring more debt and continuing to make late payments will only damage credit further. By spending less and focusing on paying off existing debts, it is possible to rebuild your credit rating no matter how bad the initial damage is.