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Credit Repair

Unfortunately, one of the ways that people realise that their credit score is not what it might be, and hence could do with some fixing, is when they try to buy that car, electrical item or house and get refused for credit. Often times people will be quite bemused by this, as they have no idea what the problem is with their credit score, or how exactly they can go about doing a do it yourself credit repair.
The good news is that it is actually a lot easier then you might think to repair your credit, and in fact you can dramatically raise your credit score if you take some calculated steps.

The first step is not to panic. You can turn this around and get this sorted, but you will have to have your wits about you, and take some action.

The second step is to know your rights as a consumer. You can find out your rights by going online and looking up the credit bureaus. Once you get there you can order a copy of your credit report. Equifax, Experian, and Transunion are the three credit bureaus and they can explain the scoring system and how they derive your credit score.

The third step is to be prepared to write a number of letters. As you are going to have to contact your debtors and see if you can arrange terms on any outstanding loans that you have. This is all perfectly doable, but it is by its very nature a time consuming business, so you may end up deciding that it is worth using one of the reputable online credit repair agencies to take some of the hassle from the whole process away.
Review the list of credit cards, outstanding debts, and major purchases. If you see any mistakes or questionable items, make a copy of the report and highlight the error. Next, gather any information that you have to back you up, such as bank account statements, and make copies of these as well. Write a letter to the specific credit reporting agency that shows the falsehood, whether it is Experian, Equifax, or TransUnion. Explain the mistake and include a copy of the highlighted report along with your documentation. It’s a good idea to send this letter by certified mail, and keep a copy for yourself. The reporting agency has 30 days from the receipt of your letter to respond.

If you are behind on any, get caught up as soon as you can. On-time payments are the single most important factor to your credit score, and your credit won’t improve until you can consistently pay every bill on time

The good news is this stuff is not hard to learn. Not only are there a lot of books on fixing your credit, they now have credit repair software that can do most of the work for you. The books usually show you the how and why while the software does most of the tedious tasks of derogatory item removal.

In some ways paying for the help of these agencies is also ironically the best education that you can get in repairing your credit, because these companies have now got the whole process down to a very fine art form when it comes to the steps that you need to take for a do it yourself credit repair (you can read what others made of it here) and so that means that you you can get this sorted out more easily then you might imagine.
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