September 29, 2011 12:56 ET

Should I Wait Until I'm Out of Debt to Repair My Credit?

SCOTTSDALE, AZ--(Marketwire - Sep 29, 2011) - After a period of unemployment, many Americans find themselves with two big financial worries: debt and a ruined credit rating. But which one of these should be tackled first? There's really no need to wait until your bills are paid off before you think about improving your credit. As a matter of fact, fixing your credit now may actually help you get out of debt, says Kristy Welsh, editor of With a good credit score, you can save money on:

Auto Insurance - In many states, your personal credit rating has a direct impact on the auto insurance premiums that you pay. Lower premiums mean extra cash to pay off debts faster.

Credit Card Interest Rates - The higher your credit score is, the lower the interest rates will be on credit cards. There are still credit cards with 0% introductory rates on balance transfers. If you have a decent credit score, you could transfer credit card balances to a new lower rate and save you money.

Finding a Job May be Easier - It's well known that prospective employers are likely to pull your credit when considering you for a job. If you are out of work and you know you have a few blemishes on your credit, taking steps to repair your credit rating can be a fast-track to getting dollars in your wallet.

Welsh suggests two simple steps to improve your credit score.

1. Mistakes are common on credit reports. Make sure all of the information is accurate. You can get all three of the credit bureaus from

2. Pay credit card balances down to 25% or less of your credit limit. "Paying down your balance can have a huge positive effect on your credit score.

For more FREE information on repairing your credit, visit at


Founded in 1997, is a free one-stop destination for consumers looking for free advice on repairing and rebuilding bad credit. offers several books for purchase, including Good Credit Is Sexy, a tongue-in-cheek guide to managing your credit.

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Good Credit Is Sexy:

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  • For Press and Media:
    Kathleen Richards
    Web Nation, Inc.