Having errors in your credit report can lower your credit score and negatively affect your ability to get new credit. Repairing your credit yourself is really not that difficult to do and the fact is that there is nothing a credit repair company can do to improve your credit that you cannot do yourself. But, before you begin, be sure that you have ordered three reports from the top credit bureaus: Equifax, Experian and TransUnion because some of your creditors and lenders may report to just one of the credit bureaus. Having all three reports in hand will ensure that you are given a complete view of your credit history.
To begin the credit repair process, look through the reports for any incorrect information such as accounts that do not belong to you, payments that have been reported as being late, charge-offs, accounts that are marked as maxed out and so forth. Highlight the information that you believe is false. Your next task is to simply send a letter to the credit bureau explaining the discrepancies. Be sure to send along a copy of the report with the false information highlighted. Your main goal should be to have the status of all of your past due accounts reported as 'paid' or 'current' because payment history makes up a large portion of your overall score.
The key to DIY credit repair is to document, document and document some more. Retain copies and records of all of the letters and documentation that you send as well as the dates sent. Under law, any relevant dispute must be investigated within 30 days of receiving your letter. Any item that cannot be verified as accurate is removed from your credit report. The credit bureaus will mail their responses directly to you so you can see the results as they occur. If the items you challenged are not removed, it is a good idea to send another dispute letter.
A crucial aspect of credit repair is to be sure that you are current on any accounts that are past due and to be sure to pay off charge-offs. Do not allow your credit cards to become maxed out. If any of your cards are over the limit, working to pay off those balances is in your best interest. If you are finding it difficult to make payments, take a proactive approach. Call your creditors and negotiate in order to keep your accounts clean and to stop them from being reported. Ask for reduced monthly payments or changes in due dates.
