Repairing your Credit
Repairing your credit is not the complicated process that you might have thought it is. All of
those debt consolidation company commercials make credit repair look like a nightmare when really all it takes is
some time and attention. After all why spend money on a company when repairing your credit is something you can do
perfectly well all by yourself (for free)?
Repairing your credit starts with re-learning how credit works. Credit is not "something in my hand now that I
will pay for later." Credit is not something to be trifled with. It's easy to disregard it when we are young, but
it is this common disregard for credit that often leads us to need to repair our credit ratings in the future.
The first step to take in repairing your credit is to find out how much money you owe. You can do this by
obtaining a copy of your credit report from each of the three major credit reporting agencies. You can also get a
copy of your credit report by visiting freecreditreport.com. When you get your report go over it and figure out
what your total debt is. Now, if you have kept records, check the credit report against your records to make sure
it is accurate. Report any mistakes to the credit reporting agencies and tell them why the information is
inaccurate. Credit reporting agencies are required to investigate each mistake and to correct it.
You will also want to make sure that your debts are valid. Send letters to your debtors and ask them to send you
proof that you agreed to the debt reported and a current amount owed. If they do not respond or they fail to send
legitimate proof within thirty days, notify the credit reporting agencies. The law requires that any account that
can't be validated be deleted.
Finally, you will want to contact all of your valid debtors and work out payment arrangements with them. You
would be surprised at how friendly companies are when you agree to work with them and make a concentrated effort to
pay your debts. Most will send notice to the credit reporting agencies that your accounts are in good standing,
which helps in your efforts to repair your credit.
Once you have worked out payment plans, it is imperative that you stick them. After all, if you had just kept up
with your monthly payments in the first place you wouldn't be repairing your credit. Make sure to pay your bills
every month and to pay them on time.
Another way to repair your credit is to get a low limit credit card and
use it and pay it off every month. This credit card will be reported to the credit agencies as an account in good
standing with a good payment history which will also help raise your score.
Repairing your credit does take some time and effort, but it is possible to do it yourself.
Once your credit has been repaired you will be surprised at how much more relaxed you feel.
Credit in Minutes Tip #1
Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report
every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them
with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets
Credit in Minutes Tip
Just because you qualify for all of those credit cards does not mean you should get them. A person with too many
credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially
stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?
Credit in Minutes Tip
The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be
true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time
will keep your score up where it should be.