Do It Yourself Credit Repair: What Steps Can You Take?

This article offers some guidleines for people who are interested in credit repair: be it paid or do it yourself credit repair.

The Cost of Credit Repair Help

As you are likely aware, paying someone to help you repair your credit can cost you a small fortune: some credit fixing experts such as specialist credit repair lawyers could charge you in excess of $3,000 to help you clear your credit problems. If you cannot afford the kind of fees that credit repair lawyers and the like will charge, the following steps might at least begin your journey towards a good credit record and may at best help to significantly repair your credit.

What Part Can You Play in Repairing Your Credit?

  1. Identify NegativeCredit Items That You Can Repair

    Firstly you should be sure of your credit status: how can you hope to beign to repair your credit if you do not have a clear understanding of the things that have damaged your credit score. You can check your credit report through several online credit reporting services such as the following:
    • Experian
    • Transunion
    • Equifax
    2. A credit report will show you lots of details about you: your address, how good you are at paying for things, any convictions or arrests and whther or not you have been declared bankrupt. Lenders, credit agenciaes and employers can use this information to determine if you are a reliable borrower or employee. The above agencies will give you free access to your credit report for one month, after which time you will have to pay a monthly subscription.

    A credit agency is another place where you could start your credit repair quest. As you are legally entitled to a free credit report each year (you are also able to claim another free credit report by law if you hve been refused credit in the two months prior), you should get in touch with the credit agency that holds your credit file.

    When you have a copy of your credit report you need to ensure that all the information about you is accurate. If your credit report contains information that is inaccurate it could impact your credit worthiness and may prejudice a credit or loans company against you as a borrower. Problems such as these can often be resolved fairly quickly and play a major part in repairing credit.

    You should examine your credit report very closely to ensure that all the information contained within it is correct.

  2. What To Do About Negative Items

    If you find errors or mistakes on your credit report these must be corrected in order that your credit repair efforts are not advesely hampered. By law, any mistakes that you report to your credit bureau have to be investigated within an "allotted time". Any negative entry on your credit report can be cancelled out by you with the credit bureau having to investigate each item you identify. If the particular item cannot be proven in the "allotted time" the negative item must be taken off of your credit file. You are then entitled to a free copy of your repaired credit report. However, any negative item that the credit bureau deems to be valid, can be disputed via a letter outlining any explanation you have to refute the item.

  3. Repair Your Credit

    Once negative items have been removed from your credit report, you should strive to rebuild and repair your credit rating. You can boost your credit rating by applying for secured loans (low amounts) or credit cards. If someone you know who has a good credit rating is prepared to co-sign any credit or loan application you can receive some reflected glory, so to speak: co-signing from someone with good credit can boost your own credit rating.

Credit Repair Summary

Although a poor credit rating can seriously affect your life, credit repair is a real possibility for most people. Although having a poor or bad credit history can be very difficult, don't despair as there are steps you can take to actively repair bad credit scores and reports. Although do it yourself credit repair may not set the world on fire, it could have at the very least have a positive effect.

Site Links for Credit Repair Pages

Bad Credit Rating - Debt Consolidation Loans - Experian Credit Report