Troubleshooting: how to do it yourself


According to the Fair Credit Reporting Act, an individual has the right to dispute erroneously-entered data on their credit report. Credit repair organizations claim that they can remove incorrect entries on your credit report, but in reality, anyone can do it themselves for free. It is highly encouraged to repair credit on your own. In reality, an individual can simply repair their own credit report without spending a single penny. The steps below may not magically restore your credit overnight, or may seem tedious, tiresome, and involve too much effort, but they can help you out in the long run.

Obtaining copies of your credit reports is the starting point for credit repair. It is necessary for an individual to review through their credit reports carefully and thoroughly, as incorrect, even fraudulent information can actually affect one's credit score. The three major bureaus are mandated by federal law to distribute a copy to consumers each year, and as such, you are entitled to receive a copy. Some states authorize their citizens to receive another copy within the year for free.

As soon as you receive your credit reports, reproduce these in such a way that you can be able to make notes on the report, or highlight the items that need to be corrected. Check carefully for any inconsistencies on your report, starting with the basics: misspelled names; incorrect Social Security numbers, dates of birth, addresses, phone numbers; inaccurate places of employment; and the like. It is possible for your identity to be mixed up with someone else's, especially if you and the other person have very similar names. While you're at it, make note of all your observations, indicating them on the report. Creditors may sometimes commit mistakes in reporting. As such, watch out for charged-off accounts, overdue accounts, judgments, and liens that have been on your report for more than seven years. The same rule applies for bankruptcies that are more than ten years old.

After indicating these errors, you need to fill out the Request for Reinvestigation form enclosed with the original sent copy of your credit report. If the envelope sent to you does not include this, a similar form provided by the bureau can be used as well. Once the credit reporting agency receives your dispute, they need to re-examine the information. They may either record the disputed information, or delete the information within a span of 30 days. After the process is completed, the credit report will be returned to you with the corrected items, free of charge.

Of course, the more ideal solution to repair your credit would be to pay off all your bills. If this is not possible at this moment in time, possible alternatives to debt relief and credit clean-up include hiring the services of a debt management firms, such as a credit consolidation agency They are able to consolidate all your loans and allow you to make a monthly payment for all of them each month, and at the same time have lowered interest rates and minimal charges. Creditors will report to the bureaus that you have sought help from these agencies in paying for your bills, and yes, these will appear on your credit report. More often that not, some lenders are actually willing to disregard that fact, seeing that you have actually made steps in taking care of your credit.

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