Watch more Credit & Credit Cards videos: http://www.howcast.com/guides/29-Credit-and-Credit-Cards Subscribe to Howcast's YouTube Channel - http://howc.st/uLaHRS Howcast uploads the highest quality how-to videos daily! Be sure to check out our playlists for guides that interest you: http://howc.st/ytmainplaylists Subscribe to Howcast's other YouTube Channels: Howcast Health Channel - http://howc.st/HOE3aY Howcast Video Games Channel - http://howc.st/tYKKrk Howcast Tech Channel - http://howc.st/rx9FwR Howcast Food Channel - http://howc.st/umBoJX Howcast Arts & Recreation Channel - http://howc.st/vmB86i Howcast Sports & Fitness Channel - http://howc.st/vKjUjm Howcast Personal Care & Style Channel - http://howc.st/vbbNt3 Howcast empowers people with engaging, useful how-to information wherever, whenever they need to know how. Emphasizing high-quality instructional videos, Howcast brings you experts who provide accurate information in easy-to-follow tutorials on everything from makeup, hairstyling, nail art design, and soccer to parkour, skateboarding, dancing, kissing, and much, much more. Step 1: Pay off your debts Devise a plan to pay off your credit-card balances, even if it means living like a hermit and subsisting on peanut butter sandwiches for the foreseeable future. Tip Call your creditors and tell them you can settle your debt right now for 30 cents on the dollar. Keep negotiating until you get something from them, even if it's just a lower interest rate. Step 2: Get a secured card Once your credit cards are paid off, cancel all but the one with the lowest interest rate. Keep that for emergencies and for daily use get a secured credit card—one with a low limit that you pay for in advance. Tip Resist the urge to open a store account every time you can "save 10% today!" The little bit you save will not make up for the higher interest rates you'll pay for having so much revolving credit. Step 3: Get your record reports Get your credit reports from the three main services: Equifax, Trans Union, and Experian. All have websites, and they must provide your report free once a year. Step 4: Review your credit records Review the reports, and write to all three credit bureaus about any errors. Step 5: Keep it up Don't slip up. If you stay focused, before you know it you'll be back in the clear. Did You Know? Seven percent of Americans pay only the required minimum on their credit cards, sinking themselves deeper and deeper into debt.
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