Do It Yourself Credit Repair Tips
Many of us believe that it is only through an agency or an attorney that we could possibly have any hope for repairing our credit. This is not true. It could possibly cost you more money and time to have a credit repair agency or credit repair attorney handle your affairs than it would to just do it yourself. Before contacting an agency for assistance, follow the steps below. You might be surprised at the results.
Contact the Credit Reporting Agencies
Repairing your own credit takes time and patience. You first step is to contact the credit reporting agencies in writing and request your credit report (you can also obtain your credit report instantly and online, although there may be fees for the detailed reports). You are entitled by federal law to a free credit report every year.
There are three main credit-reporting agencies that you will need to contact. You can find the mailing addresses, telephone numbers and web sites of the three major credit reporting bureaus here at My-Clean-Slate.com.
If requesting your credit report in writing, you will need to provide the following:
- Written request for a copy of your credit report (You are entitled to one free credit report a year)
- A copy of your state ID (or driver's license)
- Proof of your current address if it is not on your ID
- Your last known addresses for the past five years
- A copy of your social security card
- Your signature (in other words, sign your request)
Allow at least 4-6 weeks to receive your credit report(s). If you have already received an annual credit report from an agency and are not entitled to the free yearly report, you may also use any denial letter of credit within 60 days of its receipt. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report.
Reviewing Your Credit Report
Once you receive your reports from all of the agencies, review each report for accuracy and differences. Do not hesitate to dispute information or account that are invalid. If you find anything on your report that is worth disputing, most agencies allow you to file an official dispute via their website. Your credit reports should include contact and account information for each creditor.
Most debts older than 7 years old should not appear on your report. After seven years, most creditors will write off the debt; some may continue their pursuit to locate you. Either way, if they do not show up on your credit report, do not try to add them in! A full review of understanding your credit report can be found here.
Negotiating with Creditors
Take it upon yourself to contact each creditor to negotiate payment arrangements. Most creditors will work with you, although some may make your task very difficult. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else. Expect some creditors to be rude and unwilling to work with you, but do not feel discouraged; just ask to speak with someone else. Offer a settlement amount. Write down details of the conversation as well as the person’s contact information every time you speak with a creditor.
It is very important that while you are paying your creditors, when you mail in your payment, that you pay by check or money order and keep all of your receipts. If you are not paying by a check, always include a SASE (self-addresses stamped envelope) with your payment and request a receipt for the payment from the creditor.
Time is Money
It may take up to six months to feel like you are making any progress at all on your credit with your payment arrangements, but rest assured that your credit will fall into place within a year.
Obtain copies of your credit reports on a yearly basis from each agency. Do not obligate yourself to any other creditors while paying off your current ones. You will or may receive several credit offers - throw them away. Stay focused on your goal to get out of debt and keep track of all your activity such as payments, contact with the creditors, their names, extension, time and date you spoke with them and list any details of your conversations and arrangements.
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