Bad credit can happen to anyone; most people are just a few steps away from having their credit score plummet. The good news is that there are definite steps you can take to repair your credit, and they are steps that you can take on your own. Here are some steps that you will find relatively easy to take.

You want to make sure the credit repair company you are considering is reliable. But, how can you do that? You can check the company's record with government agencies or the Better Business Bureau. If they have a record of disputes and complaints, and currently unresolved disputes, you should be wary of them.

Unfortunately, the credit bureaus that create credit ratings are themselves not free of deceptive practices. They may offer you a "free trial membership" to receive credit checks, but you should read the fine print. You may find yourself inadvertently obligated to a monthly charge of $12.50 or so for a year to come.

You need to find honest and reliable help in order to repair your credit. How do you do it? Look for a non-profit credit counseling service created to help consumers. You may also receive genuine help from a credit company that subscribes to a code of professional ethics.

When looking for help in repairing your credit, beware of companies that promise to improve your FICO credit score by a certain number of points in a certain amount of time. These are almost sure to be false promises, and may well involve the use of fraudulent practices which will only end up getting you in more trouble.

Even if your situation is desperate, you should avoid the "Payday Loan" companies. You may get money advanced to you quickly this way, but you will pay dearly for it. Their interest rates are very high, which means you are just increasing, not solving, your current debt problems.

Unethical credit repair companies may promise to give you a new credit identity in order to raise your credit score, beware. In order to do this, they may have an EIN tax number issued to you by the IRS, or they may use a stolen social security number in place of yours. Both are deceptive and/or illegal practices.

Credit repair companies may offer to file dispute letters with credit bureau's on your behalf. They may have expertise in this and it may help--if they are ethical companies. But, on the other hand, you can write these letters yourself with help from online tips--and save the fee you would have paid the credit company.

Your FICO score affects everything financial in your life. You are right to want to raise it, for a higher score can save you thousands of dollars. But avoid the "too good to be true" offers online. Your FICO score can be raised legitimately, only by a steady, long-term effort at financial responsibility.

Get a copy of your credit report. There are three main reporting bureaus, and they all tend to have different information. Get a copy of each one, and look through them carefully. If there are any discrepancies, report them to the company in writing. It is surprising how one simple mistake on your credit report can reduce your score substantially.

One of the things that you can do in order to repair bad credit is to continue making timely payments on all your current accounts. Do not compromise accounts that are in good standing. Focus on the positive things that you can do related to your accounts that are in good standing.

Take this advice on board and get started fixing your credit. It will make you feel great to know that you are handling things and changing them for the better. By working on your credit, you are working to change your entire financial situation, which will improve in the long run.