How to Repair Credit

Life is a bit easier with good credit. Unfortunately, it doesn't take much to damage a credit rating, and then repairing it is quite a chore. Regardless the reason you need to do some work on your credit rating, it's best to do it yourself. Set up a tracking system, follow-up, stick with it and resolve the issues. It takes time but you can rebuild and restore your credit.

Difficulty:

Challenging

Instructions

1. Pull a credit report from each of the three national credit bureaus: Equifax, Experian and TransUnion, which do not share information as they are competitors. Become familiar with the various formatting of each.

2. Review each credit report. Mark any items that are not familiar or clear. Contact the creditor using the phone number given on the credit report and inquire as to the account, transaction and date to clarify.

3. File a dispute in writing with the creditor and the reporting credit bureau regarding reported items that are not factual or accurate. Ask for proof regarding the transactions such as promissory notes, credit card agreements, or signatures.

4. Arrange to have the disputed amount removed from the credit report and all negative reporting retracted, or make arrangements with the creditor to pay the disputed amount. Agree that positive reporting is issued when the matter is resolved. Ask to be notified by the creditor in writing.

5. Maintain a detailed file of every contact regarding each matter in dispute. Keep track of date and time, the parties involved and a verbatim account of what was discussed.

6. Become familiar with the Fair Credit Reporting Act. Understand what information can be reported and what rights are afforded the debtor. See Resources.

7. Follow-up every 30 days. File a complaint with the State's Attorney General, Office of Consumer Affairs regarding matters not resolved within 90 days of the agreed upon date.

Resources

• Fair Credit Reporting Act
• Summary of the Fair Credit Reporting Act