Credit Repair 101- Do It Yourself Tips
Monday, March 1, 2010
Learn to repair your own negative credit report using these tips below:
1. Order your credit report.
Check your credit report through Equifax, Experian or TransUnion. You can get one free credit report per year from each of these through AnnualCreditReport.com. You are also entitled to a free copy if you are denied employment due to credit report information; in this situation, the company to which you applied must provide you with the appropriate credit bureau’s details.
2. Examine your credit report.
Check for errors, typos, outdated information, and incomplete or inaccurate account history. If there are any discrepancies, dispute them; if there aren’t any, make a point to improve your credit habits by taking steps to do things like pay your bills on time.
3. Dispute errors.
You can do this by making a list of the inaccurate information and sending it in a letter to the credit bureau. Make sure each error is well identified and give reason why/how it is incorrect. Mark/Circle the errors on the report and photocopy it to sent to the bureau along with any supporting documents. Always keep copies for your own files.
4. Negotiate debt repayment.
Develop a good money management plan to help you keep an eye on your spending and reduce your debt in the future. If you are finding it difficult to repay your debts, you can negotiate with your creditors to keep your accounts current and from being reported as bad credit. You may also request them to reduce your monthly payments and even change due dates to help you balance out your bills every month. Do this same thing for any fixed-loan payments and be sure to use the extra money in gradually increasing payments to pay off your debts. Negotiate a pay-off settlement if you need to, which should reduce your bills on collection accounts. Demand that any negative comments be removed from your credit report or be reported as having been fully paid. Make sure all such negotiations are documented in written agreements before issuing any payment.
5. Reduce credit accounts.
Close out any accounts that you do not need and try to stick with only two or three credit cards. You’ll need to close out the accounts gradually, over a period of several months, starting with the newer accounts first. Stick to modest credit limits even if you are offered more. Keep low balances and stay away from revolving balances.
6. Stabilize your credit report.
To add positive information to your report, you may need to request that creditors report your new account information to the bureaus. Secured credit cards will aid in the building of solid credit history, and opening saving accounts looks good as well as it demonstrates you are saving to pay off your debts.