While many people believe that getting their bad credit repaired can only be done through a professional agency, this is simply not true. By going to a credit agency, you might find that it takes a great deal more time and money than if you just worked on it yourself. Before you get in touch with a professional credit repair service, refer to the steps listed below, and you might find that repairing your own credit is not that difficult at all.
When you repair your own credit, you must understand that it is a lengthy process that requires patience. The first thing you need to do is contact credit reporting agencies in writing, and request a copy of your credit report. Federal Law states that everyone gets a free credit report annually. You can locate the three main credit-reporting agencies that you will need to get in touch with by performing an Internet search using the terms Credit Reporting Agencies. You might also consult your local phone directory.
Contact the agency in writing, and include the following information in your request:
Request a free copy of your credit report.
A copy of your state identification (such as your drivers license)
Copy of proof of your current address (such as a utilities bill showing your home address)
Provide your previous addresses for the past 5 years.
A copy of your social security card.
Make sure you close the request with your signature.
Your credit report should take approximately 4-6 weeks to be generated and sent to you. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report. If you have already received your free annual credit report permitted the free yearly report, you can use a denial letter of credit within 60 days of its receipt.
When you receive your reports from the agencies you contacted, look over each report for accuracy and discrepancies. Create a log in order to track the differences. If you find invalid accounts or errors in your reports, do not hesitate to file disputes. If you need to file a dispute, most agencies provide the forms to do so via their website.
Each credit report should provide contact and account information for each creditor. Keep a log of all your debt information and creditors. Most debts older than 7 years old probably will not appear on the report, and if so, leave them alone. Most creditors after 7 years will write off the debt, though some might continue to pursue you. Whatever the case, do not open the Pandoras box if the account is not listed on your credit report.
The next step is to contact each creditor to make payment arrangements. Most of them will be willing to work with you, while some might not be so agreeable. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else. Expect some creditors to be rude and unwilling to work with you. Try no to feel discouraged, be persistent, and ask to speak with someone else. Offer a settlement amount. Keep a written log of the conversation, including the persons contact information each time you speak with a creditor.
It can take as many as 6 months to feel like you are making headway on your credit repair, but rest assured that your credit will get better within a year or two.
It is very important that while you are paying off your debts that you pay by check or money order and retain all receipts. Make sure that you request a receipt for the payment from the agency.
Continue to obtain copies of your credit reports annually from each agency. Do not create new debts while paying off your current ones. If you receive credit offers, throw them away. Remain focused on your goal to get out of debt and document your payments, contact with the creditors, their names, extension, time and date you spoke with them and list any pertinent detail regarding your conversations.
Latest Credit Articles
3 Prepaid Reloadable Mastercard Choices
By: Steven Walters | 25/07/2008
Here's three really good choices for reloadable debit cards.
Learn About Credit Card Debt Negotiation - Learn the Secrets
By: Bryan Burbank | 25/07/2008
When negotiating with the credit card companies about your debt it is always important to understand that you are the one in control and do not be intimidated by the credit card company. They like it when you make your minimum monthly payment and do not want you to stop that so they will be willing to negotiate your debt so to make it easier to make those payments.
Repairing Damaged Credit Scores: How to Raise Your Score 120 Points
By: Thomas Boston | 25/07/2008
Repairing a credit score can seem like a difficult and daunting task to undertake. This article helps separate the truth from the myths and help guide a consumer to repairing their credit score fast.
Are Banks Raising Credit Card Rates to Shore Up Their Finances?
By: Reno Charlton | 24/07/2008
Most people are well aware that the UK's banks area really suffering as a result of the global credit crunch, and many have had to try and find alternative ways to increase funding as a result of increased difficulties in getting money on the wholesale money markets. Some have suggested that one of the ways in which banks have done this is through increasing some fees and charges on credit cards.
The Better Your Credit Score, the Less Money You Pay in Interest
By: John Collins | 24/07/2008
Credit scores are reviewed for so many different purposes, in some instances without our knowledge, it is a good idea to review both the credit score and the credit history periodically.
Get Student Credit Cards for Extra College Expenses
By: Devora Witts | 23/07/2008
There have been lately offers for students that feature specially designed credit card packaged for college students. These credit cards offer a combination of financing, flexibility, security and control so student can feel comfortable about managing their finances and at the same time obtaining the benefits that credit cards provide.
100% Equity Financing for Home Improvements
By: Devora Witts | 23/07/2008
It is possible to obtain financing up to 100% of your property’s market value with your mortgage balance and a home equity loan for home improvements combined. With this money you can start that long postponed home improvement project and turn your home into your dreamed home within a short period of time.
Credit Repair: How to Handle a Collector
By: Jim Kemish | 23/07/2008
If you are contacted by a collector you should know your rights. A nationally recognized consumer advocate and credit repair expert offers some useful advice about dealing with collectors, and coming out ahead.
Finance 
