How to Start Repairing Credit

If you have not paid attention to your credit before, now is the time. Having good credit can make life a lot easier. The motto you should keep in mind is: Repairing credit requires diligence and dedication.

Instructions

1

Order a copy of your credit report from one of the credit bureaus. This will give you a clear picture of what your credit actually looks like. You did not get into your credit situation overnight, and a current credit report will remind you of things that happened years before.

2

Go over your credit report with a fine-tooth comb. You are looking for errors such as outdated information, wrong addresses as well as information that's not yours. It is important that your credit report is an accurate reflection of you and your payment history.

3

Dispute any incorrect information on the forms provided or write a letter explaining the incorrect items. When you dispute information you also need to explain why it is wrong. Prior to submitting this disputed information, make copies for your file. When you return it, send it with a certified receipt. This allows you to get a signature card back showing you the date it was received and who signed for it. The credit bureau has 30 days to make the changes and send you a new report.

4

Formulate a plan for paying off and reducing debt. Put the credit card debt in order from smallest to largest. Knowing that people need some encouragement, start with the smallest outstanding debt and pay it off. If the bill is really old, then contact the original creditor and make arrangements to pay it off. Be sure to document the conversation. Whatever you agree on, make sure you get it in writing.

5

Ensure the money is available to pay the bill. After paying the bill, move on to the next one. Stay dedicated to repairing your credit yourself which shows you the importance of maintaining good credit.