If you had kept a record of who you owed money to then perhaps your debt could have been avoided. Now that you are seriously in debt, you need to work extra hard to repair your poor credit. The following advice can greatly help you rebuild your credit rating.

For some it may hard to finance their home due to having less than ideal credit. If you are in this situation you should look into FHA loans before speaking with a bank. You might be able to get an FHA loan even if you cannot afford closing costs or down payments.

If you need to repair your credit, the first step is to come up with a workable plan and stick to it. Unfortunately, the way that you approach spending money will probably have to be revamped. Don’t buy anything unless you absolutely need it. If you are buying something because you want it, and don’t need it, put it back on the shelf.

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A secured credit card might be a good option for the person with a poor credit score. With a secured card, you have to fund your account before you use the card so that the bank will be assured that you will pay off your debts. By using a new card responsibly, your credit rating will start to increase.

If you have credit cards where the balance is more than half of your credit limit, pay these down right away. If you owe more than half of your credit limit on any credit card, this will have a negative impact on your rating. Plan to pay down that card as soon as possible, or see about transferring some of that debt.

As this article indicates, paying off your debts and raising your credit score require a pragmatic approach more than anything else. Following this information can help you reach your debt goals.