DIY Credit Repair
Negative comments on your credit report can cost you serious money. You do not have to despair though, since it is never too late to become credit worthy again. However, always remember that credit repair does not happen overnight. It requires serious dedication and perseverance to start a clean slate again.
How to Get Started: You should know who the three credit bureaux are and what they are saying about you. Since creditors do not have to send a report to Equifax, TransUnion and Experian all together, they usually only report to one or to those to which they are subscribed. This means that the reports from the bureaux are often a bit different from each another.
The first thing you need to do is order your credit report. Remember to order it from each bureau because you would only waste your time and money if you only order a credit report from one bureau. The cost of the credit report might vary from state to state though it is estimated that the cost of your credit report is about $10.
However, you are entitled to a free copy of your credit report from the agency, if you have been denied employment or credit due to a bad credit report. You must ask the company to provide you with the name of the credit bureau, telephone number and address.
Once you get hold of your credit report, look at it very carefully, since the credit bureaus create your credit report based on the information they receive from your creditors, which is never checked. It is your job to make sure your credit report is a good reflection of your credit status.
Be especially on the look out for typing errors, incomplete information, and out-dated or / and inaccurate histories of account transactions. After reading the report to make sure its veracity, list all the points you want to verify and the reasons why.
Since bad reports cost you money, remember to be thorough. You have two choices: either complete the dispute form which|that| is enclosed with your credit report or write a letter. It is also recommended that you send a photocopy of your report with the errors clearly marked to the credit bureau who sent you with the report. Additionally, do not forget to include supporting documents with your report.
Before posting the documents and report, do not forget to keep copies of all the forms and the date you sent it. Normally, the bureaux will investigate the dispute over the thirty days after getting your letter. Then, any item that has been proved to be false is deleted.
Stability in Your Credit Life: Another method of repairing your credit is to show that you are working at adding positive information and stability to your credit life. Even if you have the required credit rating, there can still come times when you are denied credit due to insufficient credit references.
There are a minority creditors that do not normally report credit history to the credit bureaus, so what you can do is try asking these creditors to report their information about your account and the history of your monthly repayments to the credit-reporting agency or agencies.
You could also try creating a solid credit history through the use of secured credit cards. This kind of credit cards is recommended for those with no credit status or who are in the process of repairing their credit.
Furthermore, it is advised that you open a savings account at your bank. Doing this, might convince your creditors that you are attempting to put money aside regularly and that you are saving that money for the purposes of paying off your debts and repair credit.
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