Credit Repair Guide

A Credit Article Contributed by Priya Katyal

Credit Repair Guide

If you want to repair your credit by yourself then you must know what you have to do. Search online for the guide to repair your credit on your own. There are number websites which will offer free guides, e-books and consultation on credit repair. However you can start by following the steps mentioned below:

First Step for Repairing Your Credit is to Get Copy of Your Credit Reports

You should get the copy of your credit reports from all the three major credit reporting bureaus- Experian, Equifax and TransUnion. You can get the credit report either for free or you can pay a nominal charge for it. Once you have all credit reports in your hand, read each one very carefully. Check the reports for errors such as wrong account information, incorrect home addresses, duplicate accounts and forged information.

If you find any errors in any of the credit reports you should take appropriate steps to get them corrected. Identifying errors is very important if you want to repair your credit

Second Step for Repairing Your Credit is to Report the Errors

After identifying the errors in your credit report you should underline each one and send a copy of the credit report with your letter explaining the nature of the errors to the corresponding bureau. Credit bureaus must respond with in 30 days with steps they have taken to correct the errors. You should always keep the copies of your correspondence with different bureaus and always send your letters by certified mail and make sure to keep the receipt of delivery of your letters. Getting errors removed from your credit report will be of great help in getting your credit repaired.

Third Step for Repairing Your Credit is to Report Errors to Your Creditors

When reporting errors does not help and you can't get them removed from your credit report even though you are right then you should get to the source of the error and that is the creditor. After all it is the creditor who reports your accounts to the credit bureaus and is responsible for all the black marks that are there in your credit report.

You should write to them and explain them what has happened and why you think that the information submitted by your creditors to the bureaus is not correct and that they should rectify it. Don't forget to attach documentary support, if you have any. Keep record of everything you send to the creditors.

Fourth Step for Repairing Your Credit is Too Get Rid off Negative Accounts and Unused Accounts

You may find some accounts in your credit report which neither credit bureau nor your creditors can do anything about. They are the collection accounts owned by debt collectors. You can write to debt collecting agencies and start negotiating with them to settle your account or getting the negative account deleted. Removing such negative accounts from your credit report will help you to repair your credit. Paying off your balances and closing unused accounts will also help in repairing your bad credit.

Fifth Step for Repairing Your Credit is to Formulate a Plan to Pay off Your Debts

If you really want to repair your credit then you really have to devise a plan to pay your creditors. You should at least pay the minimum amount due every month. Negotiate with your creditors, explain them why you could not pay and get them to agree to a monthly payment you can easily afford. Creditors are interested to get there money back rather then reporting negatively to the bureaus about you and if you really stick to the devised plan then they might even put a good remark in your credit report.