First: the ads that say "we'll fix your credit!" are LYING. You are the one who's going to have to do the job.\n\nFirst: get your credit report. Most states now have a law on the books that requires all of the credit reporting agencies to give you a credit report once a year. Check it over. Make sure that there are no *mistakes* on it - late payments that were not late, disputed accounts, etc. \n\nLate payments and charged-off accounts stay on for 7 years, bankruptcies for 10. Generally, lenders are looking for patterns of behavior rather than once-in-a-way problems. If you find something wrong (and it's likely, unfortunately), write a letter to the credit bureau, providing documentation that you're right. They have to respond in 30 days; if the creditor can't prove that the negative item is indeed true, it comes off your report.\n\nNow you're down to real debt. If you can't afford the payments, contact the lenders and negotiate reduced payments. They will prefer to be getting something rather than having to write off the debt. Once you can afford to pay everything, commit to paying off the worst (i.e., highest-interest) items first. They cost you the most money that isn't going toward paying off the debt. Once you've killed one, the money you were spending on that one can be applied to the next-worst debt, and so on. The amount you can pay any given creditor snowballs rapidly when you follow this pattern. You have to remember, though, that when the first one is paid off, you don't have "more money". You still need to be committing that to killing your debt.\n\nIf you're out of debt, but your credit is lousy, get a secured card, use it, and pay it off every month. This will do a lot for your credit rating. In addition, open a savings account, and make regular deposits. This shows you are saving money and have a resource to pay your bills.
what are the best ways to restore credit?