Your DIY Credit Repair Guide

Each one of us is capable of building and maintaining solid credit profiles. In fact, if you’re unhappy about your current credit rating then, there are practical steps you can take to push it up.

Still, you should recognize the fact that complete bad credit repair does not happen overnight. It usually takes months, at times even years, to rebuild one’s credit history. However, if you will start taking the necessary steps, as early as today, we guarantee that you can pave the way towards rehabilitating your credit profile until you can fully-regain your creditworthiness. To do so, you must be equipped with the following pointers:

1. Order your credit report from the three major bureaus.

Check your report from each of the three credit bureaus (Equifax, TransUnion and Experian).  Since each agency does its own reporting, you might discover differences from the three versions.  For example, you may find errors in one report but not on the two others.  Remember that you have the right to dispute incorrect details in your credit report since negative information can truly hurt your score.

Three Ways to Order Your Free Credit Report

If you have not yet received your credit report for this year, you are entitled to a free copy from each bureau from Annualcreditreport.com, the only authorized resource of free annual consumer credit reports.  If you have applied for new credit and have been denied or if you are unemployed and plan to seek a job in the next 60 days, you are also entitled to a free report.

2. Clean up your personal credit report.

Are there unauthorized charges in your report?  If yes, you may have been a victim of fraud or ID theft.  You should immediately report those unauthorized charges to the bureau that issued your report as well as to the creditor involved.

If you notice outdated information in your report such as a record of bankruptcy or foreclosure more than 7 years, you should request the bureau to have these negative remarks removed from your file.  What else can you dispute?  Bills that you have already paid which still appear as unpaid, incorrect spelling of your name, incorrect address, and other inaccuracies.

How can you correct errors?  Send a letter to the credit bureau that issued your report.  In your letter, point out the items that you want to be corrected.  It is also advisable to enclose COPIES of documents that support your claim.  The bureau will conduct an investigation regarding your complaint and if found valid, corrections will be made in your report.  The process can take up to 30 days upon receipt of your letter.

3. Face your debts.

If the biggest factor for your bad credit are past due accounts, then you have the obligation to pay your creditors.  What if you’re having a hard time keeping up with repayment?  The most important step is to speak with each of your creditors and request for modification with your current repayment terms.

How to Manage A Past Due Account

For example, you may ask for a longer repayment period at a reduced rate of interest.  Politely explain to your creditor your financial situation.  If your creditor can see that you are sincerely trying to keep up with your responsibilities despite the crisis you’re going through, you are most likely to be given consideration.  Most creditors would gladly adjust their terms to help a borrower continue with debt repayment than wait until the borrower declares bankruptcy.

Your DIY Credit Repair Guide (Part 2)

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