Step 2:  Hire Incredible Credit to Dispute the errors

If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to dispute these errors. You'll need to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. Once your dispute is received, the credit bureaus have 30 days to investigate and determine whether or not to make the change you have requested.

Step 3: Start adding positive information

Now that you know when your negative records will disappear from your credit report and you have disputed any inaccuracies, you are ready to start rebuilding your credit. Open up a new credit card (or a secured card) and use it responsibly each month. Keep your balances low and always pay your bill on time.

By not making any late payments, using credit responsibly, and avoiding unnecessary applications for credit, you are building a new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.

Step 4: Monitor your progress

It's easy to keep track of your credit score improvement with the new types of credit monitoring programs available today. Instead of just giving you occasional access to your credit report and email alerts, these new credit monitoring programs include unlimited access to your credit reports . Once you have signed up for a credit monitoring service, you will be able to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.

Unable to pay large bills – In the event that you cannot pay your mortgage or loan payment, contact the lender immediately. Most lenders have forbearance and modification programs set up to help borrowers who are dealing with a temporary financial crisis. You should make every effort to pay a mortgage or loan payment on time during a financial crisis. .

Deep in debt – If you have a steady income but are facing a large amount of credit card debt, you should develop a plan for paying off the debt over time. Calculate exactly how much you can afford to pay toward your debts each month. Subtract all your minimum payments from this amount and put the rest towards the debt with the highest interest rate and the highest balance. This is the fastest way to reduce your debts. Do not charge additional expenses to your credit cards during this process

Debts in collections – Unpaid debts such as medical bills, library charges, video store charges, and credit card bills are often sold to collection agencies. These agencies call and send letters in attempt to recover the debts they have purchased for pennies on the dollar. If you have debts in collection, your first move should be to request that the collectors only contact you by mail (instead of phone). By law, they must comply with this request.. Then work with the original creditor or the collections agency to negotiate a settlement.

Step 5: Take action.

There are several options available to help you manage a financial crisis:

Credit Cards – Credit cards are one of the easiest and cheapest ways to borrow money in a financial crisis. Credit cards work best for a short term problem that you know you can repay in a few months. You can keep your credit score healthy by keeping your balances below 35% of each of your credit limits.

Savings – Deciding to access savings during a financial emergency may seem like a bad idea, but it is actually a smart move in some situations. You will not have to pay interest or fees on the money you borrow from a savings account. You may even be able to access your 401(k) funds under a “hardship distribution” policy. Depending upon the situation, you may have to pay a 10% penalty on the amount you withdraw.

Personal Loans – You can borrow $1,000 to $15,000 with a personal loan. These loans have a 1-4 year term and work best if you have a stable income and need a large amount of cash for a financial emergency. The annual percentage rate for a personal loan ranges from 5-20%.