Your credit report is what financial institutions use to get a window into your past and your present financial situations. If you are currently suffering through bad credit rating due to a job loss or any other unfortunate situations, there are ways you can re-establish your credit worthiness and start over.

Step number one to tackling your credit issues is getting a copy of your credit report. You may find that getting a copy of your report may reveal several accounts that are reported erroneously or does not belong to you. Examples of common errors are; accounts being listed twice, paid accounts still showing balances, and bad reporting of late payments. The most effective way to remove negative is items is to seek assistance of a credit attorney.

The second step to raising your credit score is adding some positive accounts to your report. Even if all your negative items are removed or expire from your credit report, you still need to have some positive accounts to produce a rating.

A secured mastercard or visa is one way to add a positive item on your credit report. A secured credit card works the same way as any other credit card except for the fact that your limit will equal the amount of a security deposit. In many instances some banks offer a 25% or $100 increase on top of your initial credit card limit. Secure credit cards also report to all three credit agencies without disclosing the fact that your card is secured.

The third step is a little trick which is only possible if you know someone close to you who is willing to add you on as a co-borrower. The issues with using this trick is that you must make sure that the person you ask is reliable. If your sponsor misses a payment or stops paying, your credit will also be affected.

The last step should be the first step and it is also the one that involves the most discipline. Paying your bills on time is the single most important aspect in deciding your credit worthiness with creditors. You current status is the deciding factor on whether creditors give you a second chance or disregard all your hard work.

The credit bureaus will also continuously raise your credit score a few points for every month of timely payments. If you can afford to continuously make 2 years of on time payments, you will have succeeded in improving your worthiness with the financial institutions.

As you can see the formula to getting back on you feet and regaining your credit worthiness is as easy as getting a copy of your report, disputing negative items, adding new positive credit, and making on time payments. Once you have re-established yourself, you should also consider getting identity protection to prevent others from destroying your creditability.

For additional info on how to order free credit report you can go to how to improve your credit score.