If I need to repair my credit, I may not know how to go about the process. Repairing credit is something that is recommended by credit counselors, but some of the companies that claim to be able to do the job are really just out to make a few bucks off the person with screwed up credit. It’s important to know that I can do the job of repairing credit if I am willing to put in the time and effort, personally. Here are some tips to get the process started.
The first step in getting a clean credit slate is to determine exactly what the status is. You should get a current copy of your credit report from each of the three credit reporting bureaus and identify what each of the entries on the reports mean. There is usually personal details, credit entries made by creditors, inquiries about the status of your reports and legal judgments and liens against your property and income.
The credit reports are available free once each year. A low cost copy can be obtained, or you are entitled to one if you are denied credit. Some people prefer to get access to a copy online. When you work with an online copy, you can dispute or correct information that is in error.
Review each item on each report and make a check list of the items that need to be corrected. These may be personal items. If your name is misspelled or your address is one that was never associated with you, get it changed. Eliminate the misspellings and the wrong addresses.
The next step is harder, but can be accomplished if you are determined. A few entries at a time, work through the individual negative entries. Challenge any errors. If the account numbers are incorrect, it may look like you owe more money than you actually do. Most credit reports contain errors, so it is up to you to fight to clean up any incorrect entries. It’s best not to challenge all the errors at once. Get a few cleared off the report, then go after another batch.
As time progresses, some items will drop off due to time limits. By making a conscious effort to clear up the errors you could raise your credit score by dozens of points. This can be important if you are trying to qualify for a loan.
If you have the question “How do I repair my credit?” you have an answer in the instructions given by credit repair agencies and by the credit bureaus themselves. The process takes time and is tedious. In the end though, it is rewarding. Your interest rates tend to drop as your credit score goes up.
Repair your credit and eliminate credit debt, so you can start off with a clean sleet. Living debt free really is rewarding.