How to Repair Your Credit - Five Steps

The question of how to repair your credit has always been around, and is one of the most controversial topics on and offline. While most people advocate self help the huge repertoire of credit repair companies that run successful businesses throughout the country indicate that choosing outside help is a good option.

Let us leave aside gossip, rumors, and even statistics about successful credit repair businesses. Let us look exclusively at the facts instead. It's true you as a person can learn how to repair his own credit. It's also true that you can do it successfully even if you are not very experienced in this matter.

But at the same time it's also true that this matter often takes a lot of time and effort. Though it's an achievable task, many people still choose to use a credit repair agency solely because they do not have the time and inclination to learn all that it takes to do it on their own.

If you are looking for information on how to repair your credit, here are 5 simple steps that will take you there. Once you learn the "how", it will be easier for you to decide whether you would like to do it on your own or use an agency to do it for you.

Step 1
Order your free credit reports. This is necessary and often the beginning of your journey on learning how to repair your credit, because in most cases you will find that your score is low due to erroneous entries that must be removed.

Step 2
Identify the errors in your report so you can work out a plan on how to get them removed. Look for the following - incorrect information, due accounts that are closed, maxed out credit cards and other such things.

Step 3
Draw up dispute letters - one for each discrepancy you find on your credit report. It's very important that you send individual letters for each one of the errors you find, or your letter will be ignored. Attach to each letter a Xerox copy of the proof you have regarding the error. The better documented is the proof, the faster it will be removed.

Step 4
Add good things to your report that will improve both your score and your credit history. Get the positive issues to be reported and entered. Have the on-time liquidation of loans and credit cards payments recorded. Obtain a secured credit card and improve the credit to debt ratio.

Take concrete steps to pay off your debts, including credit cards. Prioritize your payments so you pay off those debts first, which have the highest interest rate.

Step 5
Another option is to forget about the steps 1 through 4 and find a trustworthy and experienced credit repair agencies that knows all there is to know about how to repair your credit. This means that you need not learn anything about this matter; all you need to know about how to repair your credit, is finding the right credit repair agency.

Tips

1. The easiest way to repair your credit is to hire a recommended credit repair agency
2. Do not close credit cards account after paying them in full; you will need the credit limit that they give you to counter the debt

Warnings

1. Beware of fraudulent credit repair companies; chose only those which have excellent reputation or that come with word-of-mouth recommendation
2. If you do hire an agency, check with the Ethical Credit Repair Alliance, the "watchdog of credit repair companies."
3. Beware that credit repair takes time; do not expect overnight miracles

How to repair your credit - get help
If you're seeking the services of a credit repair agancy, don't hire anyone until you've read "The Danger Signs to look for in a Credit Repair company"