by Joseph Hazelbaker

Created on: September 05, 2008

Credit is critical. However, having bad credit isn't the end of the world. There are several simple (and free) steps you can take to keep you in the "game" while you repair and build your credit history.

The first thing you need to do is order your credit report from all three credit reporting bureaus: Equifax, Experian, and TransUnion. Each bureau receives it's information from different sources, so you want all three reports to cover all your bases. Having your credit report is critical for three reasons. First, you need to identify the issues that are dragging your credit score down. Second, you need to see if any of these issues are mistakes, and attack them if they are. Third, you need to identify the negative credit history that is accurate so that you can develop a strategy to neutralize it (if possible) and so you know when you can get that history removed. Each of these issues is addressed in more detail, below.

At the outset, however, you need that credit report. You can receive your report free of charge if one of the following two circumstances apply: 1) you have had negative action taken against you (such as being denied credit) within sixty days of your request; or 2) you have not requested a credit report in the last twelve months. The three bureaus have set up a centralized clearinghouse where you can access these free reports, located at www.annualcreditreport .com. If you don't meet either of the two circumstances, you will have to contact each bureau directly and pay for a copy. Their contact information is listed at the end of this article.

Once you receive your report, you will want to familiarize yourself with the abbreviations. Have patience, because the print is small and the abbreviations are numerous. Once you are familiar with the format of the report, get your highlighter ready.

Make note of each and every negative report. Don't sweat over each one at this point, just focus on noting all of the negative history. Knowing this gives you a background of what's going on vis-vis your credit profile. You see yourself as your creditors do. Assuming the information is accurate, this can be a wake-up call that allows you to see how certain habits have affected you and how you can change. It is worthwhile to point out here that a terrible report isn't the end of the world. All negative information can be wiped out after seven years (ten years in case of bankruptcy) in most cases.

However, if there are inaccuracies in your report, you want to attack

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