Having poor credit can be a serious hindrance to moving forward with your life. It can make you feel like you are in debtors' prison with no hope of escape. It's not difficult to get back on track to good credit, so read the rest of this article to learn what you need to do it right. If at all possible, avoid filing bankruptcy. Bankruptcies appear on credit reports for ten years. Bankruptcy not only zeros out your debt, it also zeros out your credit score. Most lenders will be hesitant to work with you in the future when a bankruptcy shows on your credit report. Frequently contact any credit bureaus with which you are engaged in conflicts to expunge false or erroneous claims appearing on your credit report in order to stay updated on their progress. Keep track of the interactions you have with everyone, including emails, letters or phone calls. Your dispute letter should be sent by certified mail; this way, you can prove both the date you mailed it and the date it was received. When repairing your credit, maintain both savings and checking accounts. If you have accounts in good standing, it can give credits a signal that you have money coming in on a regular basis and that you are protected in the event of an overdraft. If managed properly, your accounts will show evidence of reliability and responsibility, which will help your situation with creditors. The fastest way to improving your credit is to get all outstanding debt paid off. Your credit will only get worse if you are not paying off your debts. If you are buying a home it will not always be easy, and even more difficult if your credit is bad. You should consider getting a FHA loan they are backed by the government. It might be possible to get an FHA loan even if you don't have the money for a down payment or the closing costs involved. If you have credit cards with a utilization level over 50%, then pay them down until they are below 50% utilization. If you have a balance that is more than 50 percent, your credit score will drop. If you can, pay the balances on your cards; if not, do your best to pay as much as possible each month. If your credit needs to be fixed, you may want to consider credit counseling. A good counselor can help you eliminate your debt, while still having enough to live on. They'll help you learn to rely on credit cards less, if at all, and they will teach you how to handle the outstanding debts you have already incurred. Your credit score suffers each and every time you make the choice to get a new credit card or line of credit. As tempting as it can be, do not a new credit card. As soon as you open a new credit account, your credit score drops immediately. These tips can help you repair your credit and keep it high. The time you invest educating yourself regarding credit improvement is worth every minute.