Do it yourself Credit Repair

A Credit Repair Guide | Tutorial | Kit

If you had believed that it is only through an agency that we could possibly have any hope for repairing our own credit. Rest assured that this is not true. It could probably cost you more money and time to arrange through an agency than it would to just do it yourself. My recommendation, before contacting an agency for help is to follow the do it yourself credit repair steps below as you may just be astonished at the outcome.

Do it yourself credit repair takes time, and definitely takes patience. You initially begin by contacting the credit reporting agencies in writing asking for your credit report. You are entitled by Federal Law to a free credit report every year. There are three main credit-reporting agencies that you will need to contact. The bureaus information can be located by running a search on the internet for Credit Reporting Agencies or looking through you local phone book. Include the following in your written communication with the credit agency.

1. Written request for a copy of your credit report (You are entitled to one free credit report a year).
2. Include a copy of your state ID.
3. Send proof of your current address if it is not current on your ID.
4. List your last known addresses for the past 5 years.
5. Include a copy of your social security card.
6. Sign the document

You have to allow at least 4-6 weeks to receive your credit report(s). If you have already received an annual credit report from an agency and are not entitled to the free yearly report, you may also use any denial letter of credit within 60 days of its receipt. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report.

After receiving your reports from all of the agencies, review each report for accuracy and differences. Design a spreadsheet or written log to track the differences. Do not hesitate to make use of disputes or accounts that are invalid. If you find anything on your report that is worth disputing, most agencies allow you to file an official dispute via their website. Your credit reports should include contact and account information for each creditor. Organize all of your debt and creditors. Most debts older than 7 years old will or may not appear on your report, if this is the case, leave them alone, do not dig around for them. Most creditors after 7 years of not having any contact with you will write off the debt, some may continue their pursuit to locate you, either way, don’t open the Pandora’s box if the account isn’t listed on your credit report.

After doing the above, contact each creditor to make payment arrangements, most are keen to work with you, some may make your task very difficult. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else. Expect some creditors to be rude and reluctant to work with you, do not feel discouraged, and just ask to speak with someone else. Offer a settlement amount. Write down details of the dialogue as well as the persons contact information each time you speak with a creditor.

It may take up to 6 months to feel like you are making any progress at all on your credit with your payment measures but rest certain that your credit will fall into place within a year.

It is imperative that while you are paying your creditors, when you mail in your payment, that you pay by check or money order and keep all of your receipts. Always include a SASE (self-addresses stamped envelope) with your payment and ask for a receipt for the payment from the creditor.

Get hold of copies of your credit reports on a yearly basis from each agency. Do not obligate yourself to any other creditors while paying off your current ones. You will or may receive several credit offers, throw them away. Stay focused on your goal to get out of debt and keep track of all your activity such as payments, contact with the creditors, their names, extension, time and date you spoke with them and list any details of your conversations and measures.

Well, that’s about all to this Readabout article on Do it yourself Credit Repair. Best of luck!