Finding credit is harder than ever in today’s economy, and if you have bad credit it’s going to be even tougher. Personal loans with bad credit, student loans with bad credit, bad credit mortgages, car loans with bad credit – all of these are already nearly impossible to get, or will get harder to find as banks everywhere tighten their lending standards to cope with a disastrous economy.

There is no easy way around a bad credit score. The companies that claim they can help you eliminate a bad credit score are scams that unfortunately many people fall for when they’re desperate to get more credit. But the reality is, the only thing you can do is take steps to begin repairing bad credit – including start paying on time, paying off some debts, reducing your spending, and not taking on any new debt.

Does that sound harsh? It doesn’t have to be. Unfortunately, we’ve all learned to live on credit. Once your credit limits are maxed, any little emergency or need means you don’t have the cash to take care of th problem, because you are spending your entire paycheck every month paying your minimum payments on mortgage, loans and credit cards.

The biggest change has been that just a year or two ago, even people with bad credit could get car loans with bad credit, bad credit credit cards, or laptops on bad credit. But no more. There may be a few lenders who are out there lending even to people with low credit scores, but the interest rates and fees are so high, you risk falling right back into default on these loans.

Maybe your credit problem started as a result of an event that wasn’t your fault. The vast majority of bankruptcies for example are the result of a medical illness, loss of a job, or a divorce. These life events aren’t always foreseeable, and suddenly, you can’t pay your bills. But as desperate as you might get, bankruptcy may not be the right path to take.

Still, regardless of the reason your credit report is now in the toilet, the only way to get started repairing bad credit is by taking small steps to correct the problems of your past credit history.

First, don’t fall for credit repair agencies, or scams that claim you can start a brand new clean file by applying for a tax ID number. All false. You may wind up with worse credit, or other penalties. And, they don’t work.

Instead, you can take the same steps yourself that any credit counseling agency or credit repair agency will offer. Over the coming weeks, I’ll be posting the steps here that you can take, but the entire list is available now free via email. You can sign up here for a free 3-part email course, “8 Steps To Fixing Your Own Credit.” Subscribe here to get notices when new posts bring you more ways you can get started repairing bad credit and improve your credit score.

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