Have you fallen behind on your loan or credit card payments? If so, it is never too late to get started rebuilding your credit. Today is the day to get started! It will take time to repair your credit but the earlier you start, the earlier you can be debt free. Take these steps to get back on track: 

• Obtain a copy of your credit report. Visit www.annualcreditreport.com to get a free copy of your credit report from the three largest credit bureaus (Equifax, Experian and TransUnion). Review the report and write a dispute letter for accounts that are not yours as well as any information that is inaccurate.
  
• Determine how much you owe. Make a list of all your creditors, amounts owed, and interest rates for each of your outstanding debts. Once you've recorded this information, create a personal repayment plan by taking a look at your monthly income and expenses. Calculate how much money you have left over to devote to paying back debt after paying your monthly bills. Identify any expenses that can be reduced or eliminated. With this information, you can settle on an amount that can be set aside to pay back debt every month.
  
• Once you've got your plan, it's time to make payments. Important things to remember:
  • - Tackle your debts one at a time.
  • - Pick the account with the highest interest rate to pay off first.
  • - Contact creditors to negotiate a lower interest rate and work out a monthly repayment plan. Make sure you get all agreements in writing.
  • - Once you make a payment agreement, make sure to stick to it.

When you are done paying off your debt, it is very important to update your credit report by contacting the three credit bureaus. You should ask for a "proof of payment" letter from your creditors and mail the bureaus a copy along with a dispute letter.

After the debt has been resolved and paid for, there is still room to continue building your credit. Open a secured account for a credit card or take out a small installment loan and begin to establish good payment habits, including paying on time and paying more than the minimum charge on your credit cards.

Tip: Remember, repairing your credit takes time. Don't get discouraged if your credit score does not improve immediately. If you stick with your payment plan and manage your accounts responsibly, your credit history and score will improve.

 For more information visit www.accionusa.org.