Credit Repair

     Do you need help with Credit Repair? If you have negative information on your credit report you do! In fact, even if you don't have bad credit but your report has a few errors you could benefit substantially by correcting those errors. On the other hand, if you do have poor credit then repairing your credit is a must for you.

     Credit Repair is an entire process and the very first step is controlling your debts. Look at it this way, if your credit has many late payments on it and you attempt to improve your credit but continue to make late payments you will fail to improve your credit rating. This makes perfect sense, so the first step to credit repair is debt management!

     Now that you have your debts under control we can start improving your credit! There are 2 ways to do this. First is Self Repair and the second is a Credit Repair Service. Regardless, of which method you choose you will have the same 3 goals.

1. Correct inaccurate information on your credit report
2. Establish new credit
3. Prevent any more negative information on your credit report!

Step One

     To begin your credit repair we need one important resource. This of coarse is your credit report! Although we can work with just one of your credit reports you really should be using a tri-merge credit report. Why you ask? Because each report from Experian, Trans Union and Equifax tends to be different. The reason for this is simple. Your creditors often report to one of the credit bureaus but not all three. Therefore, to see everything that is being reported about you, you'll need a tri-merge credit report. Unlike a single report you can't get a tri-merge for free but if you are serious about credit repair you'll get a tri-merge! I personally recommend True Credit at the link below because of how easy there report is to read in comparison to other products.

Online 3-in-1 Credit Report Links

Self Help Credit Repair

     The number one advantage to Self Help Credit Repair is the cost. Its free because you do all the work. If you only have one or two errors on your report and lots of time this is a great method.

     Basically, you read though your tri-merge report and find all the inaccurate information. Once you have identified the inaccuracies, you will contact the credit bureaus and file a dispute.

For Do It Yourself Repair help click here!

Credit Repair Services

     If you have many blemishes on you credit report then a Credit Repair Service is a good option. These companies make the disputes for you and follow through with the credit bureaus which is a very time consuming process. Also, if you lack documentation supporting your claims you will have better results with these companies than arguing with your creditors alone.

One note to remember with these companies is fraud! Remember this rule of thumb, if something on your credit report is correct it belongs on your report. Only time will fix these problems. If a company tells you they can remove those things, number one they can't and number two its against the law. Therefore, you should only work with a company that is credible. For starters I suggest you only consider companies that belong to the Better Business Bureau. I highly recommend Lexington Law for two reasons. One, they do belong to the BBB and two, they are an actual law firm who specializes in credit repair.

Lexington Law - Credit Report Repair

Step Two

     The second step to repairing your credit is to establish new credit. The fastest way to do this is with Credit Cards. This is also the most dangerous way to rebuild credit. In fact it might be the very reason you got into debt in the fist place. However, with the skills you will learn here this won't be a problem! For one, you must pay off your balance each and every month! Not only will this keep you out of debt it will also look great on your credit report. The three rules below will explain how to handle your credit cards in a way to rebuild your credit and keep you out of debt:

1. Don't charge something you can't pay for with cash! To make sure you abide by this you need to record each purchase you make with your card in your check register. Deduct this purchase just as you would when you write a check and that way when the credit card bill comes you have the money to pay it in full.

2. Another option is to only use your card for an expense you have budgeted. An example would be gas for your car. You have $100 dollars per month budgeted for gas and instead of paying cash you now pay with your credit card. Again make sure you track and record each purchase. At $100 stop and pay your credit card off in full when the bill comes.

3. If you just don't feel you can be disciplined enough to not charge up your card get a secured credit card. This is very similar to a debit card you would get with your bank account except this card reports payments to your credit report to rebuild credit. Here is how it works. A secured credit card is called secure because you put money on the card you charge against. When you spend all the money you can't charge anymore. This way you can't build any debt but you do build great looking credit because no one can tell the difference between a regular credit card or a secured one!

     Regardless of which credit card you choose, the benefits are the same. You will reestablish a great credit history and by following the advice above, you will rebuild your credit. You will have open trade lines on your credit report that all show current payments and you will have zero balances. To a potential creditor you will be their ideal customer!

Find the best Credit Card for your needs Here!

Step three

     The last step to rebuild your credit is to prevent any more negative items on your report. By definition this is very simple. Don't do the things that you are now trying to repair on your credit report. In practice, this takes a change of ways. You need to be responsible with your credit and consider it in all your financial decisions. The number one way to start this process is to pay all your bills before their due date!

Additional Information

Credit Repair Scams to Avoid!

Back to Top - Credit Repair