A lot of people are interested to know if they can fix bad credit on their own.  The fact is that you can do certain steps to improve your bad credit.  However, it will not hurt to seek advice or counselling from a trusted credit counselling agency.   If you look for a government-accredited agency, you should be able to get valuable credit counselling services for just a small contribution or for free.

Meanwhile, here are some things that you can do by yourself:

Check your personal credit report. You can order a free copy of your credit report from each of the three major credit bureaus by visiting Annualcreditreport.com, the only resource authorized by the government.  According to the Fair Credit Reporting Act (FCRA), all consumers are entitled to one free report from each bureau annually through this website.  You can request all your three copies at once or order one copy at a time.

TIP: How to Get Your Free Credit Report

Evaluate credit information. Credit reports are not usually without errors.  You may discover incorrect charges in one of your accounts or there could be paid charges that still appear in your report as unpaid.  Remember that such errors can negatively affect your credit rating.  Even outdated information such as a bankruptcy or foreclosure that is older than seven years should not be included in your report.  You must immediately request the bureau to delete outdated information from your file.

GUIDE:  Things Which Can Hurt Your Personal Score

Dispute errors. The proper way to dispute unauthorized charges or ask for corrections is to send a formal letter to the credit bureau that issued your report.  The letter must clearly specify the detail that needs to be corrected or erased.  It is recommended that you enclose with your letter a photocopy of your report, with the disputed items marked or encircled.  If you can enclose copies (Not ORIGINALS) of documents that support your claim, then that is better.

GOOD READ:  The 6 Quick Fixes to Your Credit Score

Wait for the bureau’s action.  The credit bureau will conduct an investigation about your dispute which can take up to 30 days upon receipt of your dispute letter.  Nevertheless, the bureau must contact you that an investigation has been started considered at least 15 days after receiving your mail.  If you do not receive any response from the bureau, it’s a good idea to send a follow-up dispute letter.  If your complaint is found valid, the credit bureau will send you a letter, informing you about the result of the investigation along with a free and updated copy of your credit report.

Pay your current bills on time.  To prevent your credit score from dropping off further, make sure that you can pay off your current bills on time.  Take note that even another late payment can pull down your credit score.  This advice applies for all your accounts (credit cards, loans, mortgage, insurance, etc), including utility services that you are subscribed to (cable, internet, telephone, electricity, etc).

FOOD READ: Negotiate These Expenses and Save Your Budget

Pay off your past due charges. Checking your report should also enable you to see if you have past due charges.  Paying off these debts should be your priority. If it is not possible for you to pay at once, speak with the creditor involved and try to work out a payment arrangement that you can follow.

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About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Bad Credit Credit Cards

About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+

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