Repairing Your Credit
reestablishing your credit for better rates and terms
If your credit has been hurt by late payments, over extension, or by other credit factors, it would be in your best interest to improve your credit position.
Having good credit means lower costs in lending and other financing. Good credit can also make the difference in getting approved for housing and in many cases, your next job. Many employers are now using credit reports to evaluate job applicants.
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Get Copies of Your Credit Report
Get copies of your credit report from all three credit bureaus.
You may connect to each credit reporting agency individually, or get your 3-in-1 report.
It is important to review all three. Some creditors may only report to 1 or all 3 major credit agencies.
Check Your Report for Accuracies
Review each report for inaccuracies and negative items that do not correctly reflect your credit position.
Look for collection accounts:
— Equifax lists them at the end of the report
— Trans Union mixes them throughout the report.
— Experian gives a brief explanation of all accounts.If you don't recognize any the accounts, don't assume they are yours.
Note: retain the services of a professional legal team to handle all credit repair issues:
see information
Dispute All Inaccuracies
Dispute all inaccuracies and negative items in your report.
You can file a dispute online with the individual credit agency. Note that you must file individual disputes with each credit agency if the inaccuracy is found on all three agency reports:
Experian:
www.experian.com/consumer/...Equifax:
www.econsumer.equifax.com/...TransUnion:
www.transunion.com/...Note: retain the services of a professional legal team to handle all credit repair issues:
see information
You may also send a written notice to each credit bureau using the sample format below:
Name of Credit Reporting Agency
Street Address
City, State and Zip CodeFrom:
Your Name and Social Security number
Street Address
City, State and Zip Code
Telephone NumberDate:
Re: Correction of Errors in Credit ReportDear (Name of Credit Reporting Agency):
Please be advised that the following error(s) appear(s) in my credit report issued by your agency on the date of (mm/dd/yyyy):
List Credit Name Identify the Dispute List Comments (be specific) (if you have any documentation to support your claim, forward copies along with your letter)
Please correct my credit report to remove this incorrect information. (describe nature of error; be specific)
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Please correct my credit report as soon as possible to remove this incorrect information. You may contact me at the number above if you have any questions regarding this matter.Sincerely,
(your signature)
Clean Up Your Credit Report
After you remove all inaccuracies, your next task is to remove negative items that affect your score; most notably delinquent and non-payment accounts.
Contact each individual creditor (or collection company) to negotiate a manageable repayment plan. Explain your financial situation.
Some companies will drop the interest, forgive part of the loan, or offer extended terms that allow you to make reasonable repayments.
Your last resort is to pay the entire outstanding balance in full.
- Request a written agreement that that the creditor will remove the bad rating on your credit report if you meet the terms of their repayment plan.
- Make sure you live up to your agreement. The last thing you want is to fall behind on your repayments.
Note: retain the services of a professional legal team to handle all credit repair issues:
see information
Get Professional Help
If you meet the repayment agreement under Step4, the creditor will delete the negative account and change it to a positive rating.
Make sure you review your report for that change. You should have in your possession the creditor's agreement to correct the credit report. Contact the creditor is there is an error.
Keeping Your Credit Report Clean
Make it a habit to check your report regularly to protect yourself from credit abuse and fraud.
You may consider credit monitoring and protection services to watch and protect your credit report:
— credit monitoring and protection services
— protection against credit card and identity theft