Legal Credit Repair and Restoration

Credit repair is the process of improving your credit report or credit score through a variety of tactics. Credit repair and restoration is aimed at improving how you appear to potential creditors so you can more easily obtain credit. If you need help repairing your credit report, you should speak to a financial adviser or credit counselor.

Credit Reports

People have "bad credit" because of the information that appears on their credit reports. There are three main companies that create and maintain credit reports for every consumer; Experian, TransUnion and Equifax. You can't repair your credit until you know what is on these reports, and you have the right to view them every year without charge by going to AnnualCreditReport.com and requesting your reports.

Credit Dispute

If you inspect your credit report and find an entry you believe to be incorrect or inaccurate, you have the right to dispute the entry. You can send a credit dispute letter to the credit reporting agency, or CRA, upon whose report the incorrect entry appears. You should tell the CRA why you dispute the item and include copies of documents that support your claim. The CRA must then investigate the claim and remove the entry if it finds your information is true.

Credit Use

Apart from removing incorrect information from your credit report, you can start repairing or rebuilding your credit simply by improving your credit behavior. Start by making sure you pay your bills on time every month, as this is the single biggest factor in your credit score. Paying off any credit card debts will also help you increase your score. If you don't have the funds available to pay your bills, you should talk to a credit counselor as you may need to employ more serious options such as debt settlement or bankruptcy.

Credit Repair Companies

Credit repair conjures up a very bad image to many people, and for good reason. There are numerous companies and organizations that tout their ability to help you repair your credit, though they often offer little more than a thinly veiled scam. If you consider using a credit repair service, the Federal Trade Commission reports that the company must provide you with a written contract that outlines their services, your rights and their obligations. If they do not, demand to see one before you agree to any arrangement.