Fast credit repair? It's a matter of definition

If your credit score is poor, you know that you'll have to take steps to improve it if you hope to regain a footing in the world of credit. You've probably seen websites, or received email solicitations promising fast credit repair for a price, of course. Your best bet is to avoid these scammers. That's why this situation is a matter of definition. Fast means with all due speed. A good analogy might be that of a poor, tired out old horse trying to compete in a race. While the poor horse is proceeding with all due speed going as fast as he can, he's not going to win the race. In credit markets, digging out of a financial mess takes time.

Even if you now have plenty of cash on hand to retire old debts, this does not constitute a fast credit repair job. While satisfying old debts will make your credit picture look a little better, you need to do more. As with most things in life, improving your credit score requires a slow, methodical process built around a good plan. The only viable and truly fast credit repair job comes if you've come into a windfall of cash. Of course, ironically, you don't need credit anymore.

Here's how to approach credit repair in a sensible way that gets you to your goal, with all due speed:

1.Examine your budget and cut out all unnecessary expenditures. For example, let's say you went for a bundled package of three telephone services, such as call waiting, voice mail and equipment repair, a while back. These may be costing you $10 a month. Are they worth it? That's $120 each year, which might be better spent on the kid's back-to-school clothes, or applied to a high interest credit card.

2.Open your wallet and count how many credit cards you find there. The average American sports nine of these. Stop using the ones with the highest interest rates, but continue making all of your payments, as possible, and on time.

3.Do not incur new debt. Many people fall into the trap of applying for even more credit cards, thinking they can leverage off a new one in order to make the minimum payments on existing plastic. Creditors are wise to this strategy. Instead of achieving a fast credit repair job, you're only making the situation and your credit score worse. You'll find that this strategy results in higher APRs, as well as heftier late fees if you fail to make the minimum payment. Your card may be canceled and there you are with an even worse credit score and more debt.

4.For fast credit repair at least as fast as possible, you'd be smart to contact one of the debt consolidation services. When looking on the web, choose services with a '.org' suffix to their URL, not '.com'. Why? Non-profits have the '.org', while commercial ventures are '.com'. Non-profit debt consolidation services are always cheaper and their mission is to help people get out of debt. They have all the connections and expertise to negotiate lower interest rates and are sometimes able to eliminate some of those late fees. They can work out a plan whereby you make a single, lower monthly payment to retire all of your debt, over time. Creditors look favorably on a borrower who opts for debt consolidation and consistently makes those payments on time.

5.Use the money you save with a debt consolidation plan to address old debts, still on your credit report. Every old debt you wipe out improves you credit rating.

Depending on the amount of debt you owe, it can take anywhere from 12 months to three years to repair your credit and regain an excellent credit rating. As we all know now banks were a bit too quick to hand out the plastic and the first to run for a bailout. We ordinary folk don't have that option, as we've learned to our chagrin. That's fast credit repair, in a nutshell.

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