Getting a plan for repairing bad credit is always desirable if you have a bad credit score. Without credit available, waiting a year or two to repair your credit record can seem like an eternity. But the fact is that a few simple steps can turn around your credit record so that you see improvement within just a few months. You can take these steps on your own with a do it yourself credit fix program, and without spending a lot of cash on a credit counseling service.

To start repairing bad credit, you need to know what your current credit looks like. Get a copy of your credit report, but it can also be useful to order a credit report that includes your credit scores. By subscribing to a service that lets you see your credit scores, you can monitor improvement of your credit score while you begin your credit repair program. A credit score service can cost under $10 per month. However it’s not necessary to get scores to start fixing credit. You might consider checking your credit score once at the beginning of your program, and again after several months into your credit fix program.

What’s the most important thing you can do to fix credit? The hands down most important item is to start paying on time. Even if you have bad payment history on your credit report, starting to make current payments can improve your credit score within just a few months.

Another way you can fix credit fast is to close some cards that you have open. If you have credit cards with small balances or no balances, consider paying those right away and closing the accounts. Often, having multiple credit cards available to you can score against you with credit lenders. The sooner you can start closing some cards, the sooner they will come off your credit report.

It’s important to remember that most credit reporting agencies will tell you that it can take three months for a change in your credit file to appear. Sometimes no matter what you do it will take those three months for a change to show up and affect your credit score.

Another thing you can do to help your credit score might be to apply for new credit. That’s right: if you have very bad credit, you may be able to open a new bad credit account, such as a secured credit card, to give you an opportunity to start rebuilding credit. Having a new card that always shows a “current” payment history can be beneficial.

What if your credit is so bad that you have year or more of negative credit history? If you find yourself in this situation, you may have to take more serious steps. If you are unable to make your credit payment, you may want to consider bankruptcy. A rule of thumb is: If your debt if more than twice your gross takje-home pay, you probably will not be able to dig out of the hole (unless you get a second job). This is when you might consider bankrutpcy.

If you have a year or more of bad credit, a bankruptcy will not make your credit history or score that much worse. Lenders are already looking at seven years of your credit history, and bad credit will make an impact even without a bankrtupcy. By declaring bankrtupcy, it could help lighten your debt load and give you a chance to start over with a cleared-off credit report. (Remember, though, that some things cannot be wiped out by bankruptcy, such as support payments or student loans.)

Also contrary to popular belief, having a discharged bankruptcy on your credit report can lead to creditors offering you new credit (at higher rates). They know you don’t have any other debt once your bankruptcy is discharged. As a result, your debt ratio, or the ratio of debt to income, is reduced when your debt is wiped out. You can find yourself approved for credit cards, secured loans such as a car loan, and even some other personal loan products in as little as a year or two.

Filing a bankruptcy can be expensive however. Most bankruptcy lawyers will provide a free consultation up to an hour or so for the first meeting. You can see for yourself whether bankruptcy is the right course of action for you to take. But attorney fees for filing bankrtupcy can cost $2,000 and up depending on your particular situation.

What about credit counseling agencies? First, beware of any credit service that promises to improve your credit score by 100 or more points within 30-60 days. It is virtually impossible to do this legally. In addition, you can pay significant fees for these services. Some non-profit counseling agencies will help you for free. However, you should know that many of these agencies are financed by the credit card industry. That’s why they can provide services for free. But they will mainly be concerned with helping you pay your credit card debt in full and on time. They will not help with secured loans such as car or house payments and will counsel you away from bankruptcy if at all possible, even if it’s the best option for someone with serious credit problems.

That presents an incomplete picture of what your options really are. They also may not tell you that registration with their credit counseling agency, and begin a repayment plan, also appears on your credit report, where lenders will see it and refuse to give yo credit. This is nearly as damaging as having a bankruptcy on your credit report!

Bankruptcy as an option is a very good choice for people who are not earning enough to pay all f their debt. You may discharge debt or sometimes enter a repayment plan that is court-ordered, depending on your circumstances. Either way, you have options that the credit counselors won’t tell you about, even though using their services can be just as detrimental to your credit.

The bottom line is that if you are repairing bad credit, there are absolutely steps you can take to see improvement in your credit score in the short run. In addition, many credit products are still available to individuals with poor credit. Taking steps to fix credit in the short run can help you begin a program to improve your credit over the long run, and see improvement can motivate you to stick with your credit fix program.