In today's day and age, it is not uncommon to hit "rock bottom" and be in need of credit repair advice. Reaching this point can make you feel like there is no where to turn, and no way to get back on track again. That's really not the case, and following a few simple steps can help you along the way.

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.

If you have been doing well with making your credit card payments on time, consider asking your credit card company for a higher limit. This is not so you can go out shopping and max it out. You want to keep the balance well under the limit to lower your debt to limit numbers. But, higher limits can raise your credit ratings aswell.

If you have many credit cards and are looking to improve or repair your credit, you should pay off the credit cards in order of their credit utilization. Credit utilization is basically the percentage of credit you have used. For example, if you have a balance of $500 on a credit card with a $1000 limit, your credit utilization would be 50 percent. Ideally, you will want your credit utilization to be under 30 percent on all of your cards. Having a low percentage will improve your credit score.

When trying to repair your credit, do not fall for the scams that tell you they will help you to create a new credit file. Creating a new credit file is actually fraud if you decide to follow through. Since it is fraud, you can face legal repercussions if you create a new credit file.

If you are serious about repairing your credit, take measures to reduce your spending. Most of us buy things we do not really need and eat out more often than we should. Cutting back on your spending will free up money to put towards reducing your debt, which will lead to better credit.

Repair your credit. If you want to take out a loan, a company is going to look at your credit report. If you have a poor credit score, they may refuse to loan you money or the loan that you qualify for, may have a very high interest rate. By paying off your bills in a timely manner, your credit score will improve, gradually. If you have a lot of debt that you are unable to pay, talk to a credit counselor. They will negotiate a repayment plan with your creditors, often lowering the payments and interest rates.

Hitting "rock bottom" does not have to mean the end of your financial future. By using some common sense, and following the simple steps outlined in this article, you can greatly improve your financial forecast. The road might not be a short one, but the end result will most certainly be worth the effort.