Fortunately, it's rare for anyone with bad credit to suffer complete financial ruin. But even though you probably still can borrow money with poor credit, you may end up paying a lot more for it.

You can end that cycle by repairing and rebuilding your credit. Here's how:

1. Create a Spending Plan. Take a month or two to track your spending habits. Write down everything you spend your money on, and don't forget to include purchases made with checks, debit cards or credit cards. Also, track your income for those months. At the end, list every category of expense, and then write down the total amount per month you spent in that category. With your expenses listed, you are now ready to create a spending plan. One goal is to put a percentage of your income each month into savings -- a necessary step in rebuilding your credit.

2. Review Your Credit Report. You may contact one of the Big Three credit bureaus and order your credit report for $8 (see listing below). Or you may order a consolidated credit report, which contains information from all three credit bureaus, by visiting the Union Privilege/Debt Counselors of America Web site link listed at www.unionprivilege.org/consumer/index.htm (cost $29.95). The advantage of the consolidated report is that the information is more complete and comes to you in a concise, easy-to-read format. As you read through it, make a list of anything that may be incorrect, out-of-date or misleading, then fill out the request for reinvestigation form that came with it and type a letter describing any problem entries and send it to the address provided. Credit bureaus are obligated to investigate such disputes within 30 days.

3. Add Positive Account Histories to Your Credit Files. Often, credit reports don't include accounts that you might expect to find. If your credit is missing information for accounts you pay on time, send the credit bureaus a copy of a recent account statement and copies of canceled checks. Ask the credit bureaus to add the information to your file.

4. Add Information Showing Stability to Your Credit File. If any basic information -- including employment, current and previous addresses, date of birth, social security number or bank checking or savings account numbers -- are missing or incorrect, ask that these items be added or corrected.

5. Get Credit in Your Own Name. If you are married, widowed, separated or divorced, getting credit in your own name is important. Especially if all or most of your financial problems can be attributed to your spouse or former spouse, or if most of the credit was in your spouse's name only. Contact all three credit bureaus and ask that a credit file be created in your name only, then insist that the credit bureaus remove or update all accounts belonging to your spouse alone.

6. Combine Your Credit History with Your Spouse's. If, on the other hand, you are the one with bad credit and your spouse has good credit, it may help to ask the three credit bureaus to merge both your credit histories (counter to the advice in Step 5). Once this is done, your spouse must then write to the credit bureaus to have your credit accounts removed from his file. (Step 5).

7. Get Credit Cards and Use Them Wisely. If you don't have a credit card, apply for one. If you can't get a regular credit card, you may wish to apply for a secured credit card. With a secured credit card, you deposit a sum of money with a bank and obtain a credit limit for a percentage of the amount deposited. If you charge something every month and make your payments on time, your credit report will show steady and proper use of revolving credit.

8. Open a Bank Account. Creditors look for bank accounts as a sign of stability. They also look for bank accounts as a source of how you will pay your bills. If you fill out a credit card application and cannot provide a bank account number, you probably won't be given credit.

For more information, contact the Consumer Credit Counseling Service at 1-800-388-2227 or check out the Debt Counselors of America (DCA) consumer information link on the Union Privilege Web site, located at www.unionprivilege.org/consumer/index.htm. This site link offers consumer advice and information designed specifically to serve union members and their families. DCA is the nation's first non-profit, Internet-based debt counseling agency.

The Union Plus Secured Credit Card may help you re-establish your credit. This credit card offers a competitive fixed Annual Percentage Rate and a low annual fee. To apply, call 1-800-622-2580.

Contacting the Big Three Credit Bureaus:

Equifax -- 1-800-685-1111

Transunion -- 1-800-916-8800

Experian -- 1-800-392-1122