Repairing Your Own Credit? 3 Top Secrets

If you want to repair your own credit, you will require some knowledge before you start.

There are 3 main steps you can take to improve your credit. You could hire a company that specializes in repairing credit. If you have the time and patience you can save yourself the time and money by doing it yourself.

Secret #1: The first step is to get a hold of your credit report.

If you have been turned down for any type of loan, credit card, or mortgage you are entitled to a free copy of your credit report.

You may also contact the 3 credit bureaus Experian, Equifax, and TransUnion to get a copy of your credit report free once a year at http://annualcreditreport.com or by calling the credit bureaus directly. Remember to review your report thoroughly.

Secret #2: Challenge the errors on your credit report.

This process is very easy if you received your credit report online. The 3 credit bureaus have set up a process to submit your disputes. Each dispute cycle takes between 30 to 45 days. This is where the patience part takes place.

Secret #3: Pay off any overdue debts, collections, or judgments.

When you pay off old bad debts you are showing creditors that you are being responsible in using credit. It is also a good idea to use only half of your available credit at any time. It is best to stop accumulating new debt and develop a responsible household spending plan.

Final tips: You don’t need your credit score initially.

One misconception is you need your credit score right away. There are at least 3 different scoring models that come from the credit bureaus. One is for consumers which is usually the highest. The second one is for loans and credit cards, and the third is used for mortgages. The last one always seems to be the lowest credit score.

If you follow these secrets your credit report will get better and your score will go up.

You will find a useful resource on credit repair here.

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