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You don't have to have bad credit. Let that sink in first. There's hope for the "credit deficient." Here are three simple ways to raise your credit score. Bear in mind these tips are simple, not easy. You may have to get a second job but the principles are uncomplicated and the ultimate goal is worth it . . . great credit.

1. Sit down and evaluate. You may need a week and twenty pots of coffee, but don't get up until you know exactly how much you owe. Mortgages, car loans, credit debt, interest rates, everything. Write it down.

Now calculate your monthly expenses. Unless you've charted this before and can rely on past data you will need to either guesstimate conservatively or take a month to track your spending. The latter is more accurate. Save receipts and record everything. Find a good computer program. After thirty days you should have a solid idea of your expenditures. This exercise will not only reveal how much you can afford to apply toward debt reduction, but will also show you where to cut back on unnecessary spending.

Lastly, determine your monthly earnings. Some will be excited to see there income is higher than their outgo, but others might cringe. If your expenses cast a shadow over the money you pocket every month remember this; you don't have to have bad credit. You may need to get professional help, or a just second job, but you can win.
Now you know how much you owe, how much you spend, and how much you make.

2. Stand up and do something. Whenever possible, transfer higher rate cards to lower APR's. Consolidate. Curb your spending and pay off that principle.

There are countless things you can try but you must determine to do these two things: A). Pay at least the minimum amount due on your loans every month. You won't vanish your debt overnight but consistent and timely payments are the simplest way to raise your credit score. B). Use a credit card for your everyday purchases but don't charge anything. By now all of your long-term debt should be in loans or low-rate credit cards. Don't touch that plastic. Instead utilize another card for daily purchases. Pretend it's a debit card. When you buy a gallon of milk subtract the cost out of your register immediately. Don't spend money you don't have. That way every purchase is budgeted and, at the end of the month, that card is paid off. This regularly raises your score without borrowing a cent.

3. Lastly, lie down and relax. This doesn't mean stop working that second job, it means you don't need to fear bad credit. Continue on with a consistent, methodic pattern of making money, spending within your budget, and meeting your monthly debt-requirements.

In the end, consistency and determination will raise you credit score while lowering what you owe. You don't have to have bad credit. Fix it.

Learn more about this author, Kevin Olsen.
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