Most people do not need to hire a credit repair service. Besides being expensive, credit repair firms are often frowned upon by banks and other lending institutions, who may be doubtful about how accurately your report depicts your credit worthiness after it has been fixed by a credit repair service. You should do credit repair yourself, and this quick guide will show you how it can be done in 3 or 4 steps.
The first step to doing credit repair is to obtain copies of your credit reports as compiled by the major credit reporting agencies Equifax, Experian, and TransUnion. There are several ways of doing this. You can simply purchase your reports from them, ordering from their websites. But you may be able to get your credit report for free. Under the law, you are entitled to a free copy of your report once every 12 months from each of the agencies. You can apply for your free report online at http://www.annualcreditreport.com . Do not confuse it with websites that have similar names, as they may try to scam you into paying for some kind of membership program.
When you have your credit reports, the next step is to check them for disputable items. These include items that are out of date, incorrect, or incomplete.
Next, report the disputable items. Do this by calling the agency or sending it a letter of dispute. You can just fill up and send the request for investigation form that is included in many credit reports. Be careful in what you writing, however, as you do not want to make any inaccurate or false statements. It is best to simply list down the items you wish to dispute and state that you want them verified or else removed from your report. If you can, send copies of supporting documents with your letter, but be careful what you send. You may end up sending the agency documents that support negative information on your report.
If dealing with the agencies does not improve your score, there is one more step you can take. You can get in touch directly with your creditors and see if you can work out a settlement that will help you clear your information. You should deal with your original creditors and not collection agencies, as they will not negotiate with you.