How to Repair Your Credit - 5 Pointers

It seems that the question of how to repair your credit has always been an issue of great controversy. While most people advocate self help, the numerous credit repair businesses who come recommended by their clients indicate that choosing outside help is a good option. Let us leave aside gossip, rumors, and even statistics about successful credit repair businesses. Consider only what is really the case. Self-help is certainly a viable option. It's also true that you can do it successfully even if you are not very experienced in this matter.

But it cannot be done without effort and a great deal of investment in time. Although it can be done, there are those who would prefer to hire a professional because they feel more comfortable turning the matter over to someone who is experienced.

If you would prefer to learn how to repair your credit, read these five steps. Now that you can see how it's done, you will be better able to decide if you want to do it yourself or hire help.

OK let's get started.

Step 1

Get hold of your credit report. This is a necessity and often the beginning of your journey on learning how to repair your credit, because it's usually the case that your score is low due to erroneous entries that must be removed. Call 877-322-8228 or visit www.annualcreditreport.com

Step 2

Find the errors in your report and get to work on getting them deleted. Here's what you're looking for - accounts that are not yours, credit cards that are maxed out, and incorrect information of any kind.

Step 3

Draw up dispute letters - one for each credit bureau. If you have lots of errors on your report, it's best not to dispute them all at once, or the bureaus may label your disputes "frivolous" and just ignore them. You can attach documentation if you have any (copies only). Having more thorough documentation, it will get removed more quickly.

Step 4

Add positive information to your credit report that will improve both your score and your credit history. Have the on-time liquidation of loans and credit cards payments recorded. It's a good idea to procure a secured credit card as this could improve your balance to credit limit ratio.

It would be good if you could pay off some debts, especially credit cards. Becasuse of the especially high interest rates, these should be paid off first.

Step 5

Another option is to forget about the steps 1 through 4 and turn it over to a trustworthy credit repair service that knows all there is to know about how to repair your credit. So you don't need to learn anything about the issue; the only thing you have to know about credit repair, is how you will locate a trustworthy credit repair service.

A few tips are in order; do not close credit card accounts after paying them in full; you will need the credit limit that they give you to counter the debt, giving you a better "balance to credit limit ratio."

If you do seek professional help, beware of fraudulent companies; contact the company and ask for recommendations. You would be well advised to check with the Ethical Credit Repair Alliance, the "watchdog of credit repair companies."