Do It Yourself Credit Repair

Many people believe that the only way to repair their credit is to use the services of an outside debt agency. This is not the always the case, and in fact, you can often get yourself out of debt in less time and spending less money than any debt agency ever could. There are several steps you can take before you even have to consider using the service of an outside debt agency.

Even though repairing your own credit does take time and patience, it is possible. The first thing you need to do is contact the three credit bureaus in writing to request your credit reports. You are entitled by Federal Law to receive one free credit report every year. You can find the credit bureaus’ information by searching the internet for “Credit Reporting Agencies,” or by looking in your local phone book. Include the following in your written correspondence with the credit agency:

1. A copy of your state ID
2. Proof of your current address (if it is not current on your ID)
3. A list of your last known addresses for the past 5 years.
4. A copy of your Social Security card.

Also don’t forget to sign your letter. Allow at least 4-6 weeks to receive your credit report(s). If you have already received an annual credit report, you may also use any denial letter of credit within 60 days of receiving it. If you receive a letter denying your credit, make a copy of it and enclose it with your written request for a copy of your credit report.

Once you receive your credit reports from the credit bureaus, review each report for accuracy and discrepancies. Immediately dispute any discrepancies you find on your credit histories to the credit bureaus. Your credit reports will include the contact and account information for all of your creditors. Accounts older than seven years will not appear on your credit history, so don’t try to dig them up. Most companies will have already written the accounts off by then.

It is your responsibility to contact each creditor and make payment arrangements with them if they allow it. If a creditor is being difficult or rude, ask to speak with his or her supervisor. Do not get discouraged if your creditor refuse to work with you—you have other avenues you can pursue. Be sure to keep and make copies of all written contact between you and your creditors.

It may take up to six months to notice any change with your credit, but if you keep up the hard work, you will be pleasantly surprised within a year. When you are making your monthly payments to your creditors, never pay in cash, so you have written proof of your payment. Always include a SASE (self addressed stamped envelope) with your payment and request a receipt from your creditor.

It is a good idea to obtain copies of your credit reports on a yearly basis from each agency. While you are in the process of paying off your debt, do not accept any additional credit offers. You can stay on top of your credit repair goals by keeping track of all your financial transactions such as payments and any time you make contact with your creditors.

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