Contrary to what you may have been led to believe, if you have the right strategy and know certain credit repair tips, repairing your credit rating may not be a very difficult or lengthy process. You already know that your credit report is used by creditors to gauge their risk in lending you money. Creditors know that your financial situation could change at any time due to various circumstances, and hence, the credit reports are updated frequently to reflect your current financial reality. If you do find yourself stuck with a bad credit rating, here are some credit repair tips that could be of use to you in back your rating back in the black:

1. Get False Data Off Your Records First

When you get your credit report, go through it very carefully. Often, false data - some cash advance you didn't take, money you didn't borrow, etc. - may have crept onto your report. Without getting into the "why," you need to eliminate these first. To repair such errors, simply write to the credit bureau listing the error, how it caused you problems (difficulties in getting loans, etc.), and any relevant account numbers (including your social security number). The credit bureau may balk at first, but if you persist they will have to get such false data off your report.

2. Pay Your Bills

This may sound obvious, but a late bill payment can look really bad on your credit report. A no bill payment, on the other hand, looks even worse. Rather than not paying the bill at all, consider paying it late, or if possible, in installments.

Often, creditors will be willing to negotiate your debt with you. In many cases, the debt can be negotiated to almost 60% of the amount owed. However, when creditors do negotiate with a debtor, they attach an expiry date to the offer. So unless you can pay the renegotiated debt quickly, don't bother with haggling with creditors. Depending on your individual situation, debt settlement may be an option to seriously consider, but it will place a black mark on your credit report.

3. Get Stale-Dated Items Removed

Although the credit bureau and creditors will usually remove bad entries off your credit report automatically when the law requires it, it helps to make a phone call or write a letter to the creditor, asking them to remove any paid off debt from the report. Credit bureaus, banks, etc. are monolithic organizations and things can often get lost in a bureaucratic maze. If you are serious about credit repair, a phone call or letter can prod them in the right direction. The preference is, of course, letters since they provide an audit trail that can be used to ratchet up the pressure if nothing happens.

Credit repair isn't impossible nor does it have to be very time consuming. The time required will depend on the number and complexity of the issues, who the creditors are, etc. The best way to go is to keep things simple by keeping payment current, paying off your bills as soon as you can, and negotiating your debt (where possible)if you are in a situation where you simply can't afford to keep current. You can have a spanking clean credit report by using these simple proven credit repair tips.