How to Repair and Rebuild You're Bad Credit

Is your Credit Shot? Do you always see those ads on TV that promise you that they can help you get your credit right? If so, there are a lot of companies that can help you rebuild your credit, but I have a cheaper alternative…Fix your credit yourself! Trust me it can be done.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• You're Recent Credit Report

1. Get a Copy of Your Credit Report The First thing you must NOT do is run away from your creditors. Please don’t wait for them to call you, contact them directly as soon as you realize that you are not going to be able to keep up with the payments. Most creditors are not out to get you regardless what you might think and will actually work with you. They Actually want you to pay them back and usually will work something out that fits your budget.
   
   Working with your creditor is the best way to prevent the need for credit repair. Your credit score may drop slightly, but nearly as bad that you would need drastic steps to repair your credit ranking. As long as you show a willingness to pay back a creditor and keep in contact with them, you may never get a blemish on your credit report. It’s when you try to ignore your creditors that they report you to the credit bureaus. However, it is human nature to avoid conflict. If you have avoided your creditors and are being denied credit you need to take steps to start rebuilding your credit.
2. Get help if Needed for FREE, if Not do it yourself! If you are unsure about how to proceed with your credit repair, you can get some help from your local credit counseling services. They can help you to work out a plan and a budget. There are also many non-profit groups that offer help. In addition, you can check with your employer, bank, credit union, or credit repair company to investigate options for no-cost or fee-based credit counseling programs.
   Before you begin your credit repair, you should know your rights under the Fair Credit Reporting Act. These rights can help you to understand how to proceed.
   First of all, you are entitled to a FREE copy of your credit history report if you’ve ever been denied credit, insurance, or employment. But you MUST ask for it within 60 days of that denial. You can also get a free copy if you can prove you are:
   • Unemployed and plan to look for a job in 70 days
   • On welfare
   • A victim of identity theft or fraud
   Obtaining a copy of your credit report is the first step in credit repair.
3. Improve Your Credit by Removing Negative Remarks If you are denied credit, insurance, or employment because of inaccurate or incomplete credit information, then the company has to give you the name and address of the reporting bureau (either Equifax, Trans Union, or Experian). If there is inaccurate or simply wrong information about credit card or other loan repayments on your credit report, then you can dispute it with the credit bureau to get it corrected. This is free to do this, but you will need to prove why the information is false. Getting this inaccurate information off your report will help your credit repair. If you don't want to take the time or just desire to avoid the potential frustration you can contact a professional and reputable credit repair company such as Lexington Law to help you with this process.
4. Here are some final facts that will help you to better understand how credit works and what you can and can’t change when you engage in credit repair:
   • A bankruptcy can stay on your credit report for 10 years
   • Lawsuits or judgments against you can be reported for 7 years or until the statute of limitations runs out (whichever is longer).
   • There is no time limit on information reported because of an application for a job with a $75,000 or more salary.
   • There is no time limit on information reported because of an application for more than $150,000 worth of life insurance
   • Applying for a lot of credit at once (e.g. multiple credit cards with multiple credit card issuers) will cause your credit score to go down.
   Taking the steps to repair and rebuild your credit is the best way to ensure you can enjoy the benefits and advantages of having a credit card. Remember, your credit card is a privilege not a right. Be responsible when using it.

Tips & Warnings

• You can do it. You can improve your credit.