Credit problems are rampant. There are countless commercials on TV for credit repair companies, most everyone you know has had some sort of credit issue, but so far, youve been lucky ” or maybe not. Today, well explore three of the tell-tale warning signs that signal you may be in need of credit repair, and then well outline some of the most successful solutions to help get you back on track.

Warning 1 – Know the score! Your credit score says more about you than you may think. Your credit score has a major impact on everything from interest rates to insurance premiums. For practicality sake, lets say your credit score is 600, thats pretty good right? WRONG! Unfortunately, any credit score under 720 is considered problematic and could use some repair.

The credit scoring range extends from 300 on up to 850. If you have a credit score of 850, you have the golden ticket! High credit score equals low risk to lenders and insures they will provide you with the best possible interest rates. Experian, Equifax, and TransUnion are the three main credit bureaus and their sole purpose is to collect information from companies that give you credit. The information is then analyzed and used to write up your credit report, wherein your credit score is derived.

Warning 2 – Dont be so negative! Although it may have been a long time since you were late with a payment or went delinquent on an account, your credit report may still be holding a grudge. If you havent taken steps to guarantee your credit has been cleaned up, those late payments and delinquent accounts can take as long as 18 months to clear off. The really bad news is that each negative entry on your credit report will pull down your credit score.

Warning 3 ” You got troubles! Imagine youve gotten a raise in pay and youre ready to trade in that old beater for something new and shiny. Youre talking things over with the finance officer at your local car dealership, when, much to your surprise, you learn your payments will be a lot higher than you thought they would be. As you sign the dotted line, you begin to wonder why youre going to be writing a monthly check for twice what you calculated. Well, If you have difficulty getting a decent rate on loan for a new car, you may be in need of credit repair.

These are three laymans warning signs that indicate your credit might not be as great as you thought. If you think you may be in need of a little credit CPR, all it will take is some patience and perseverance. Most people can tackle credit issues themselves like getting debt consolidation loans, but if you dont feel confident doing this, or your problems are more severe than you can handle, there are a few respectable credit repair companies that, for a nominal fee, will take on your credit woes for you Keep on your toes when it comes to your credit. If you spot the warning signs, go on the offensive immediately. Your finances and your credit rating plus your secured loans will be happy you did!

Perhaps you have tried to buy a home recently, only to be turned down for financing on the grounds that your credit score is not high enough. If this has happened to you, then some credit repair is in order. While it is sometimes possible to secure financing even if your credit record has some flaws, the better your credit rating, the lower the interest you’ll have to pay – which means more money in your pocket! So how can you get started towards credit restoration?

Making your payments on time is the first and most important step. Regardless of your past, it is your recent credit activity which will make the biggest difference to your creditworthiness. Late payments can seriously damage your credit score – by as much as a hundred points in some cases.

Catching up on your payments is the first step to credit restoration. Consider selling things you don’t use, taking a second job or using your tax return to do this – whatever it takes to become current with your payments again will go a long way towards the credit repair you need.

Making sure that you are making your payments on time is how you should begin your process of credit restoration, but you’ll also want to get copies of your credit report from the three credit reporting bureaus (TransUnion, Experian and Equifax). Make sure that everything you see on your credit report is accurate. If not, you should write to the bureaus right away to dispute these inaccuracies. The bureaus will have 30 days after receiving your letter to investigate the items in question – this can clear up some inaccurate items on your credit report which could be hurting your credit score.

If you see any debts you had forgotten about on your credit reports, be sure to pay them off.

Try to think about your credit report in the way that a creditor might view things. Are your credit limits maxed out? If they are, then start making the largest payments you can afford on these debts in order to pay them down as quickly as possible. Creditors prefer to see large lines of credit which are going unused to maxed out accounts. Paying off these balances can be a big part of your credit restoration plan.

Once you have paid off credit cards and other accounts, be sure to keep them open. A lot of people choose to close these accounts after paying them off – but an open account with a zero balance is much better for your credit score.

Credit repair is a process and it won’t be done overnight. It can take some time – more than a year in some cases. If you are dedicated to the goal of credit restoration, you’ll see your credit score improve over time and you’ll feel much better for it. Start today and get on the path to financial freedom.