Fixing Your Credit

Here’s a piece of credit repair advice: you need to consider the benefits and costs to using a credit repair agency.

If you opt to repair your own credit, you’ll save the monthly fee you would be paying an agency. You’ll send letters and make calls and know exactly where you are in the process at all times. Also, if you make all your own contacts, you’ll provide the personal touch to make it all more believable.

Repairing credit yourself is the most flexible. If you want to wait, you can. If you’re ready to act, you can. You can make the decisions an agency might have to call and ask you about anyway. For example, if you see a charged off account that’s 6 years old, it might make sense to leave it alone rather than dispute it since it will fall off anyway after 7 years of inactivity.

Reasons you might want an agency to work on your credit are that takes some time to do it. Additionally, you might wonder if you’re doing it right and struggle with self doubt. Credit and financial health are one of those things that you should learn to do yourself. It’s like your health or your children. Yes, you can sometimes pay for someone to help but it’s ultimately your responsibility.

If you’re just getting started, there’s more than enough than you could ever need online about how to repair your credit. The challenge is sorting through it and putting it all in order. My advice is to find a reputable book or course that puts all the pieces together for you.

What about using an agency?

A credit repair agency will do the same thing you can do for yourself. You can send letters. You can read articles on credit repair advice. You can open or close lines of credit and negotiate your rates. On the other hand, sometimes it’s nice knowing someone is negotiating for you.

Unfortunately, the experience of many consumers has been that credit repair agencies take your money and then just spit out a form letter on your behalf if that. Maybe the reporting agencies see the letter and reject it based on not enough information. They don’t like anything that looks like spam either.

Then you’ll wonder what’s happening as the credit repair agency collects a monthly fee month after month. While you’re waiting there will probably have been some other things you could have been doing to improve your credit if you would have known.

My recommendation is to do your own credit repair. Spend a little bit of the money you’d give an agency and get yourself a good book or course. Your financial future is up to you.

Find out how to do your own credit repair without an agency. Visit www.creditrepairsecrets.org for free credit advice.

These are the steps to follow to clear negative entries off your credit report. Print out a copy and check off each item as you complete it.

Go to www.annualcreditreport.com and access your credit report from each of the three credit reporting agencies. They’ll want personal details like your date of birth, social security number and two years of prior addresses. You’ll be directed to each of the reporting agency’s websites individually. You’ll have 30 days to access your reports though what you see won’t be updated during that time. Print out copies for your records.

On your copy, mark any negative entries that should be removed. Every creditor is different and may not report to all three agencies. Look at each report for differences. If you do have items removed, the agency is required to notify the others so they can remove it too.

Write a letter to each of the agencies that explains why any negative items shouldn’t be on your report. If you have documentation saying something has been paid, etc, send that along with it. You can also write and ask for them to add any accounts in good standing that they may not have listed. You’ll need written verification of that too so it’s easier to ask your creditor directly to report any good credit you’ve built.

When you list negative items, include all the names, addresses, account numbers, dates, amounts, etc so there’s no question which items you’re disputing. Have a good reason for disputing each item as well. Saying you never had that account works if it’s true. Saying you don’t want it on your report doesn’t. If you’re not sure, you can validly claim that you don’t recall having that account. Don’t dispute something and just hope it will fall off because most major creditors have a staff dedicated to verifying accounts.

Include your full name (incl. middle name and generation), current mailing address, date of birth, social security number, complete mailing addresses for the last two years.

You must include a copy of a government issued ID AND a copy of a utility bill, insurance or bank statement. NOT valid: credit card statements, voided checks, lease agreements, magazine subscriptions, or post office forwarding orders. You have to include these items exactly or the reporting agencies will reply they don’t have enough information to identify you and tell you to do it again.

Send your letter USPS certified mail. If you don’t, you run the risk of them “losing” your letter and you having no way to verify you sent it.

You can track the letter on the USPS website to find out when it was delivered. They are required to investigate and verify within 30 days or they have to take the items off your report and let you know.

That’s it. You can now take steps to start building better credit.

Find out how to do your own credit repair without an agency. Visit www.creditrepairsecrets.org for free credit advice.