Your credit score is an important part of your financial well-being. Duh. Pretty obvious, right?

Most people know that your credit score is used to determine whether or not you will get a loan or a credit card, and how high or low your interest rate will be. But most people don't realize that your credit score is used on other ways too - such as your insurance and employment. That's right, your credit score can be used by employers to determine whether or not you get a job!

Is that fair?

» Click here to read more

Are you fed up with being turned down for loans - or paying very high interest rates - because of your past money problems?

With the right information, fixing your credit problems is not that difficult. These simple do it yourself credit repair tips helped me clean up my credit report and get rid of 27 damaging items. So, if past financial problems are costing you money, and driving you crazy, you're not alone.

Not long ago, about the only financial problem I had not run into was bankruptcy (although I was considering it at one point). But with a little patience and persistence - and some help from the "do-it-yourself" credit repair tips below - eventually I got almost all of the negative items off my credit report (which happened because of a business idea that did not work out).

» Click here to read more

Many people don't know what is on their credit report until they apply for credit, and are denied. The 3 major credit bureaus now offer each person the opportunity to receive one free copy of their credit report each year. No, not the "free credit reports" you see on TV all the time. Those aren't actually free. You must sign up for some type of credit monitoring or other unnecessary service (see our article Is FreeCreditReport.com really free?).

Even if you think you have perfect credit, or don't use credit often, it is a good idea to review your credit report each year to make sure it is accurate.

If there are any errors, you will be given instructions for disputing and removing the errors. You can also learn more tips on how to repair your own credit, improve your credit score, and get your credit back to normal.

» Click here to read more

Over the past four years, debt has become a hot topic in mainstream America. The U.S. government has borrowed over $2.5 trillion since the implosion of the Subprime Mortgage Crisis. This massive accumulation of debt by the federal government is not an isolated incident; unfortunately, the United States has a culture of indebtedness. Young people in America are expected, and even taught, that debt is a way of life.

Typical American youth are encouraged to go to college and/or get credit cards and incur huge debts. According to a report from the Institute for College Access & Success’s Project on Student Debt, the average college loan for students who graduated in 2011 was a staggering $25,000. During college young people are bombarded with credit card offers all over campus as credit card companies set up booths to lure in young consumers. The result is that the average undergraduate student carries $3,173 in credit card debt, according to Sallie Mae-a college financing company.

Upon graduation, students are then encouraged to buy a car on a loan, and just a few years later to take out a mortgage for a house. By the time the average American reaches the age of 30, it is typical to be carrying college loans, credit card debt, car loans, and a mortgage.

» Click here to read more

If you are like millions of other people all around the world, you know how tough it can be to deal with credit card debt issues. This is simply not something that anyone wants to have to think about or deal with. However, these are problems that have to be taken care of. It is best that you know a little bit about what options are available to you as you go forward.

Credit card debt problems are primarily problems of a lack of available funds to pay. It is not that you are trying to skip out on the debt that you owe, it is simply that you do not have the money to pay it. Life is very expensive, and it can be difficult for even those earning plenty of money to pay their debts on time. Luckily for all of us, there are ways to deal with the issue. The first thing to do is use something known as debt consolidation.

Debt consolidation is the process of taking out a loan in order to pay off the debts you currently have. This may seem like an odd way of dealing with things, but it actually works. If the loan you are taking out has a lower interest rate than the average of the debts you are currently paying on, then you are going to be saving yourself some money. It is also nice to only have to send money to one source each month. That lowers the amount of work for you and the risk of missing a payment because you simply forgot.

Assuming that debt consolidation doesn't work or is not an option for you, you can always try to use debt negotiation to help solve the problem. All that you are doing here is bargaining with the people you owe money to give you more time to pay or a lower sum. Many times these companies will actually agree so long as they are able to get some money out of you. It is surprising just how much a little talking can get things solved in this industry. Try it for yourself today.

Why are people so focused on credit scores these days?

Every time I go online, I see another article with tips or strategies or warnings about knowing your credit score.

For many people, it's a lot like staring at your gas gauge when driving your car. If you've got plenty of gas, you don't need to keep looking at how much gas you have. Just focus on the road, and enjoy the ride. If you're running low, you know you need to stop soon for gas, but no big deal. But, if you're about to run out of gas, forget about the gas gauge and find the nearest gas station ASAP!

The same is true for credit scores - if you've got lots of money and you don't use your credit cards that often, then you really don't have much reason to look at your credit score. Instead, keep doing what you are doing! You must have a good sense about managing your money. And if you use your credit cards but pay them off every month, just make sure they all get paid on time and you don't miss any payments by accident.

But if you're having trouble paying your bills, and you're losing sleep over debt, then "good credit" is a false hope and you need to get your butt in gear and find a way to pay off your debt! Because you can't really live with too much debt and good credit at the same time, regardless of your credit score. So spend your time on finding ways to fix your money problems (make more, spend less - you get the idea) and NOT worrying about your credit score.

It drives me nuts when people say "I'm drowning in debt but I don't want to get help because it might ruin my perfect credit." Are you serious? You have too much debt, but won't get help because you want to save your credit score? Sorry, but you've got this all backwards.

OK, here are 3 good reasons why you should totally ignore your credit score when you're struggling with debt:

1) Credit scores are used for borrowing money. And if you've got a bunch of debt then you probably shouldn't be borrowing any money in the first place (and that includes credit cards, retail financing deals like 12 months no interest, store credit cards - not just loans). You should be working on paying down your debt (because too much debt lowers your credit score) and paying your bills on time (because paying late lowers your credit score). What is a good credit score? Here's a good explanation to help you understand your credit score.

2) Holding onto "good credit" is meaningless if you're trying to pay off debt. Even if you think your credit is great, and you've always paid on time, if you owe too much then your credit is not as good as you think it is! So given the choice between getting out of debt or keeping your "good credit" you absolutely should focus on getting out of debt. Unless you're in big business like Donald Trump, there is no such think as good credit card debt. Especially if your interest rates are above 15%! Hey, you can worry about your credit later...

3) Despite what "the experts" say you CAN fix your credit. I know. Because I did it. It does take some time, and some effort. But it can be done. And I'm SOOO glad I didn't wait any longer by holding onto the idea that I didn't want to hurt my credit. Because in the end, I saved much more money by getting out debt. If you're one of those people who can't pay your bills but won't get help because of the credit score impact, do yourself a favor and get rid of your debt first. Fixing your credit is much easier. And nobody loses sleep over a credit score!

Let me put it to you in real simple terms:

Debt sucks!

- First of all, it sucks to lose sleep over debt.

- And, the more debt you have the faster it sucks money out of your bank account or wallet, because of all the interest and fees.

So if you're dealing with too much credit card debt, then STOP watching all the ads for free credit reports, and STOP reading all the articles telling you how important it is to know your credit score.

And focus all your energy towards paying down your debt.

Do you agree? Or do you think I'm dead wrong? Let me know your thoughts below.

When your credit score drops below a certain level you will find that more and more of your usual lending streams will be closed off to you, credit card limits will be reduced and credit will become more and more difficult to obtain. The only way to turn things around at this point is to take the necessary steps to repair your credit rating, but is it ever a wise move to pay a credit repair company to do this for you?

Credit repair is something that you can undertake by yourself but it can be a painstaking process, particularly if you have a number of creditors or if your debts have been passed onto various debt collection agencies.

There are a lot of companies around that will take on all of the work involved in repairing your credit score and, if you choose a reputable company to do this for you, this can save a lot of time and give you the piece of mind that a thorough job is being done. The major downside is that this will cost somewhere between $500 and $1500, a lot of money to pay out when you are already in a parlous financial position.

Moreover, although credit repair companies will do a lot of the leg work, it is still down to you to do the ground work, i.e. compiling a list of your debts and creditors, and this can be the most time consuming part of the process, particularly if your debts have been passed on to third parties.

It’s also worth bearing in mind that, whilst there are a lot of reputable companies offering a credit repair service, there are those out there that will happily take your money and then take their time, which is of no use to you as you’ll want to see an improvement in your credit score as soon as possible.

This leads to another problem with paid for credit repair services, they very rarely guarantee to repair your credit score and instead will caveat any agreements so they cannot be held responsible should they fail to improve your credit rating.

So if you haven’t the means to, or simply don’t want to, pay a credit repair service to improve your credit score then what steps should you take to try and repair your own credit rating?

The first thing to consider is how you actually ended up with a poor credit rating and examine the factors that can have a negative impact ons your credit score. Your credit score can be adversely affected by any of the following:

• Falling behind on mortgage, loan or finance repayments or making late payments to credit card and utility companies.
• Being close to the credit limit allowed on your credit cards or overdraft.
• Having no previous credit history or a short credit history.
• Applying for a multiple credit cards, loans or overdrafts in a short space of time.
• Not having enough different credit lines, for example, installment loans (fixed payments such as car finance) and revolving loans (unsecured borrowing such as credit cards).
• Being bankrupt.

Once you know where you were going wrong, the next step is to prepare an income and expenditure sheet to cover all of your financial ins and outs. This should include everything from mortgage and rent payments, to utility bills, cell phone bills and the current payment requirements on any loans or credit cards you have. If done properly, this will highlight just how much disposable income you have at the end of each month and give you an idea of whether or not you can meet the demands of your creditors.

If you find that you cannot at least meet the minimum demands of your creditors then it is vital that you contact them and discuss the options regarding a compromise on your repayments. It may be that you come to a temporary agreement whereby you pay a nominal fee each month to give yourself a bit of breathing space to sort out the best solution to paying off the debts. Whilst an agreement like this doesn’t help to actually pay off any of the debt, it will ensure that you do not fall behind on payments and damage your credit score even further.

One way forward may be to take out a debt consolidation loan as, although it may seem like madness to take on more credit, it is far easier to manage one monthly payment to one creditor rather than servicing the debts of several other creditors. Furthermore, in consolidating debts, particularly credit card debts, in one loan, then you may well save money on interest payments.

Another idea could be to transfer any balances you may have on to interest free balance transfer credit cards. Again, whilst taking on another credit card may not seem like the best idea, this will massively cut down your outgoings as you’re not paying any interest and will also ensure that you are paying off your actual debt and not simply lining the lender’s pockets through interest payments.

When you have a handle on your financial situation it is time to start rebuilding your credit rating and there are numerous ways in which you can do this. One of the best ways to do this is to explore any credit avenues that you may have previously ignored such as cell phone contracts, prepaid credit cards or car finance.

It may also be worthwhile to use an existing credit card to pay for everyday expenses such as petrol and grocery shopping as this is a straightforward way to keep a regularly updated credit file and improve your credit score month on month. But, to get any benefit from this, it is vital that you pay off the balance of your card in full at the end of each month so as not to incur interest fees and fall further into debt.

Overall, it is probably best to try and undertake credit repair yourself as, if you are in a position whereby you have a bad credit score then it’s unlikely that you will be in a position to pay anywhere up to $1500 to repair your credit rating. However, if you simply cannot get yourself in a position to go it alone and require an external credit repair service, it is vital that you choose a reputable company that have your interest, and not just your money, in mind.

This article was written by Les Roberts, credit journalist at Moneysupermarket.com.

If you've ever had any money problems, then you're probably aware that they can affect your credit report. And you've probably seen the ads claiming to fix your credit problems quickly & easily.

If so, I've got two words of advice - BE CAREFUL!

For every legitimate company out there, there are several that are just out to get your money. And don't really care if they fix your credit properly or not.

Bad credit can be costly, embarrassing, and a pain in the neck.

Costly: With bad credit, you'll have a lower credit score, and therefore pay higher interest rates on credit cards and loans - if you can get them.

Embarrassing: If you've ever waited in line in a store and applied for credit to get a special deal, and been declined, you know how embarrassing that can be.

Pain in the neck: Credit problems don't go away on their, at least not quickly. It can take 7 years or more for the bad stuff to come off your credit report.

So if you've got credit problems, what can you do? And if you need help, how do keep from getting ripped off by a dishonest credit repair company?

Here are 7 tips to protect yourself from credit repair scams:

1) Know what credit repair IS & what it is NOT.
What credit repair IS:
- Removing inaccuracies from your credit report
- Removing damaging items from your credit report (yes, even accurate information can be removed, if you do it correctly, despite what many people will tell you)
- A way to fix past credit problems - not a way to keep you from making the same mistakes in the future! But hopefully you'll learn a few lessons that will help you stay on the right path
- A process that removes items one by one, not in one big step

What credit repair is NOT:
- Tricks or bribes or secret info available only to "special" people
- Anything illegal or immoral (don't let anyone tell you it is immoral to fix your credit report, it is not
- hey, the creditors and banks are far worse in the way they gouge their customers)
- Only done by lawyers or professionals (anyone can do it, trust me)
- Something that requires detailed knowledge of credit laws or financing

2) Consider doing it yourself.
It really is not that hard. But you need to know how to do it right or you could make matters worse. And be prepared for rejection, and sending letters over and over to the same places. That's where a good, inexpensive credit repair manual can help you out. You'll learn the little "tips and tricks" it takes to get rid of bad credit. Sure, you could learn on your own. But for under $50 you can save yourself a lot of time and trouble.

3) Keep in mind it doesn't happen overnight.
Even in the best cases, credit repair takes time. I did my own and it took me about 18 months to get my credit back to normal (of course, keep in mind it took a lot longer to damage it in the first place). There is no "magic potion" for fixing credit. It takes time. And effort. And knowledge. But it can be done, with a little bit of all of those qualities. The faster someone promises to fix your credit, the more you should be skeptical.

4) Check the company's references and BBB report.
If you're hiring a company to help you, ask for references. Go online and check out their Better Business Bureau (BBB) report, and see how many complaints have been filed. Or worse, if they have no BBB report. You can never be too careful. The people you will talk with will be trained salespeople, who's only job is to get you to sign up and pay. So take your time, and "do your homework" before you sign up.

5) Get everything in writing and read it carefully.
This is true when hiring anyone. But especially with any kind of debt reduction or credit repair. Make sure to get the agreement BEFORE you agree to sign up and READ it carefully. Even if it's written in fancy legal language that is hard to read. This is your contact, which will protect you if anything goes wrong.

6) Don't let anyone tell you that you need a "new" credit file.
This can only lead to trouble. No matter how bad your credit, DON'T fall for this scam. They'll either try to get you a second social security number (which is illegal), steal your current social security number (which of course is also illegal) or do something else that will cause you a lifetime of headaches!

7) Read the Credit Repair Organizations Act
To learn what these repair companies can and can't do. Just so you know, it's also written in fancy legal language so it may be hard to understand. But being an educated consumer is always a good thing

Of course there are many legitimate credit repair companies and manuals out there that can be a big help to someone in need of credit repair help. The key is to do your homework so you find one of the good ones and avoid the scams!

Need Help Fixing Your Credit?

Here's the credit repair manual
we recommend:
Learn how you can remove past credit
problems, raise your credit score, &
get your credit back to normal!

37 Days To Clean Credit