Credit Repair- Doing it Yourself

Having negative comments on your credit report can cost you big. you don't have to throw in the towel though, it's never too late to repair your credit and get back in good standing.

Keep in mind, however, that credit repair does not happen overnight, nor in a week. It takes some serious intention and dedication to wipe the slate clean, and start anew.

How and where to start-

To begin with, you need to find out who the three credit bureaus are, and what they are saying about you and your credit. they are: Equifax, Transunion, and Experian. Creditors report to these private companies about any negative or suspect activity with regard to credit applications and payment, but any individual creditor generally only reports to any one of the three, so each credit report on you, from each bureau, will be slightly different.

First, you need to order a copy of your credit report, one from each bureau. The cost will vary from one state to the next, but expect to pay around $9.00 per report.

If you've recently been denied denied employment, or turned down for a credit application, you are entitled to a free copy of your credit report from the bureau who reported your credit standing. You will receive a letter from them letting you know this, or you can contact the company which denied you for the credit bureau's phone number and address.

When you receive your credit reports, you must study them very closely. The credit bureaus create these reports from information they receive from the various creditors who subscribe to their services, but they do not verify any of this information. It is YOUR job to make sure that all the information anyone receives about you when they request a copy of your report in accurate.

Pay close attention to any errors in typing, incomplete information,
inaccurate histories, and outdated histories in your account. As you go over each report, keep an individual record for each of all the errors you want to see corrected, and the reasons why.

Be as complete as possible in this step.

You have two choices on how to proceed. You can use the dispute form supplied with the report by the bureau, or write your own letter. In either case, make sure you make a photocopy of the credit report and highlight or circle the error you are contesting, and include this with your letter. As well, supply copies of any supporting documentation you may have. Make copies of everything for your own records, and send the letter and documentation via certified mail, preferably "return-receipt requested", so you have a record of the date you sent it, and when they received it.

Any item which they cannot prove to be accurate within a specified period of time, they are required by law to remove.

Getting copies of your reports, noting all inaccuracies, and starting the process of requesting that the first item on your list be removed will keep you busy for a while. In that time educate yourself in depth on the laws that protect you, and bind them to verify,correct or remove any items which you feel are wrong. You have specific rights and it's YOUR job to know them as well.

Having a stable "credit Life".

While removing negative items on your reports is the first step to restoring good credit, you need as well to be demonstrating that you have stability in your use of credit, and most important to the business extending you credit, your ability to pay it back.

Even if you do not have a negative credit history, you may find that you are denied credit at some point due to an insufficient credit history (and being denied credit for ANY reason results in a negative report to the bureaus.)

There are a couple of ways to attack the problem from this angle.

A lot of creditor do not report positive information to the credit bureaus. You can contact the creditors with which you have a good history, and ask them to make a report of the length of time you've maintained an account with them, and your monthly payment history, to the credit bureaus.

You can also start building a solid credit history through the use of a secured credit card. These types of credit cards are secured through a cash deposit, and are offered to those who do not have a credit history, or are rebuilding their credit rating. As with all credit cards, be careful to read the fine print first.

Lastly, open a savings account with your bank, and start putting away some money, no matter how little it may seem. This will demonstrate to your creditors that you're starting to save and are reserving money to ensure you pay your debts.

If this Blog is helpful to you, please let me know.

Mike