I Goofed Now How Can I Repair My Credit?

A Credit Article Contributed by Melanie Vannuys

Can I Really Repair My Credit?

So, you made a few mistakes and now you need credit repair advice. Depending on the extent of the damage, there are a couple of ways to go. Just be careful! Keep the phrase "anything you can do I can do better." always in the back of your mind. All this means is, whatever a "credit repair agency" or "debt consolidation company" SAYS they can do for you, you can probably do the same thing yourself with little or no cost.

What Steps Should I Take to Repair My Credit?

First, obtain a copy of your credit report. This can easily be done by contacting any one of the three major credit bureaus, Experian, TransUnion or Equifax. By law, these credit bureaus are each required to supply you with one free copy of your credit report per year. It may be wise, as you begin to repair your credit, to request one copy from each credit bureau every three months. This will allow you to monitor your credit as you repair it.

Once your credit report is in hand, the real "fun" begins! Review your report line by line. Keep in mind that no one can legally remove ACCURATE black spots on your credit report, but there still steps you can take to lose some of the negativity.

For example, did you know, if a credit bureau attempts to contact a collection agency appearing on your credit report and they are unable to verify information with them, the negative account must be erased? Also keep in mind there is no charge for initiating an investigation of your credit report.

Initiating the investigation into your credit report is a fairly easy process. Once you have reviewed your entire credit report, make a list of any questionable items that you find. Once you have your list, sit down and write a letter of dispute to the credit bureau listing the item. Be sure to send the letter via registered mail, this way, the credit bureau is required to sign for the letter, letting you know they received it and when.

Once your letters are written, be patient. Keep in mind that if a credit bureau receives a letter of dispute, they are required, by law, to investigate, and do so within thirty days. According to the Fair Credit Reporting Act, the credit bureau must notify you with the results within five days of the end of the investigation. If the credit bureau is unable to verify the negative claim on your report, by law, it must be removed and cannot be replaced without proper verification.

I Finished Repairing My Credit - Now What?

If you have exercised your rights and your patience and repaired your credit, you have won the battle but not the war. To properly maintain your newly repaired credit, you need to use common sense. Repairing your credit isn't going to matter if you fall back into the same habits that got you into this mess in the first place. Be smart!