There are instances when you find yourself either rejected for a loan that you needed
to get very badly without knowing exactly why or struggling with debt; either of these situations may require credit repair.
A common mistake is enlisting the help of credit repair companies.
Keep in mind that no matter how bad your credit is, you can still fix it yourself.
Delaying repairing your credit is never, good-negative files can stay on the records for ten years. This can be very disadvantageous especially when you need an important loan.
Bad credit records may come from wrong or incorrect reports.
Start your repair by asking for your complete credit records from the credit card bureaus and review them carefully. Highlight errors, accounts incorrectly charged to you, or payments that have been erroneously recorded.
The next step for credit repair is to write the bureau a dispute letter reporting all the errors you have found in your record. Include your name, account number and social security number.
It would also be best to include a copy of your record along with the highlighted errors. The creditor must reply to your letter within 30 days and must have the issue resolved within 90 days.
The whole process can be handled by you with no help from credit repair companies.
Another source of your bad records maybe your spending habits.
First, try to work out agreements with creditors to make a schedule for making small payments for the money you owe. This is better than not paying anything at all.
Do not forget to put this agreement into writing; a written document is your defense against future disputes.
Another step in repairing credit is to keep a budget and set aside money to pay for your debts.
Continue paying the debts until all past due accounts in your record are reflected as "paid."
Keeping credit cards and loans in good standing also helps in credit repair.
Continue paying the balances on time to show that you can maintain a good record.