How to Fix Your Own Credit With Do it Yourself Credit Repair Counseling

Many companies advertise they can repair an individual's credit for a fee, but the reality is, anyone can take steps to repair his or her own credit for much less and without the risk of scam. According to the Federal Trade Commission, no one can legally remove accurate and timely negative information from a credit report, but it is possible to remove inaccurate information and to take steps to improve creditworthiness. However, it takes time, effort, and a commitment to paying bills on time to achieve a good or excellent credit score.

Instructions

1

Order a copy of your credit report. Every individual is entitled to a free credit report once every 12 months from each of the three major credit reporting agencies. Visit annualcreditreport.com, call 1-877-322-8228 or complete an Annual Credit Report Request form found on www.ftc.gov and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

2

Review your credit report for inaccuracies and mistakes. This includes accounts of which you have no knowledge and outdated employment information or home address.

3

Write the credit reporting agency (TransUnion, Equifax, Experian) and dispute any inaccurate information found on your credit report. Provide copies of documents supporting your dispute. Request that the false information either be removed or corrected. The address to file a dispute should be listed on the credit report that contains the item being disputed.

4

Make a list of bills, including minimum amounts due and due dates. Create a separate list of all income coming in. Compare the two to develop a realistic monthly budget.

5

Contact any creditors for which you determine you cannot meet the minimum payments required. Politely explain your situation and ask for a payment plan based on what you can realistically pay each month. Do not allow the company's representative to pressure you into agreeing to pay more than you can afford. It might be necessary to call back and speak with a different representative later, or multiple times until you reach someone willing to help. Be persistent if necessary.

6

Pay your bills on time. This simple step is the most important and will improve your credit rating faster than any other action.

7

When a balance on an account in collections is paid in full, request documentation that the debt is discharged. Apply the minimum payment you were making on that debt toward another debt.

8

Pay off small balances first. This will slowly improve your debt-to-income ratio, which in turn improves your credit score.