Start Repairing Your Credit Yourself

Yes, it is possible. You don't need a debt consolidation company nor do you need to be a finance whiz. You can repair your credit yourself – just be patient because it won't happen overnight. Even if you have really bad credit, you shouldn't let your credit status go stagnant. It's even more imperative now that you being to re-establish good credit even faster! The motto should be: pay on time, EVERY time.

Equifax, TransUnion, and Experian are the top three credit bureaus. You should get your own credit report and find out what they're saying about you in your credit report. They will most likely be slightly different from each other but all three of them together will give you a complete picture of your credit history and credit score. You don't necessarily have to pay for this. You can get a free credit report from many sources.

Once you get a hold of your credit report, you will need to go through it in detail. Almost every consumer has one error on at least one report out of the three (from the three bureaus). These reports are generated based on the information sent to the bureau from the creditors – it is not the bureau's responsibility to verify it. Keeping your report clean and error free is your own responsibility. There can be mistakes such as typing errors, outdated information, incomplete information, information for another consumer with possibly the same last name (yes even that's possible), etc. If you find any inaccuracies, make a note of them and dispute them with the respective bureau.

However, if some of the negative information is correct, then only your future financial practices can help reverse that. You need to come up with a plan that helps you reduce spending and assists you in making all your payments on time. Late bill payments, such as for credit cards, and charged-off accounts stay on your credit report for seven years. Most creditors look for a pattern of payment rather than focusing on one-time or rare occurrences; so consistent on-time bill payments will improve those negatives. These blemishes on your report come in the way of you getting personal loans or credit card on good rates, so it is important to keep it sparkling clean. Even though you can get bad credit loans, the interest rates will be much higher – though getting loans even with bad credit is another way to start fixing your poor credit score.

Remember, your creditor can help you. You can call your creditors and discuss with them any possibility of keeping your accounts current and from being reported as "bad debt" if you're having trouble making payments and this situation is expected to be short-lived. You can negotiate with them to lower your monthly payments, or even help you out by change the due dates.

Slowly close out unneeded or unused credit accounts. Two to four credit cards at most are recommended by some experts. Remember that cutting up the card doesn't close out the account! You should close out accounts slowly over several months. Once closed, do verify that all accounts you've closed are reported as "closed by consumer".

Remember that even though the process might be slow – it is possible. Keeping your finances in check is not only healthy for your credit report, it will help you keep a good life style.

Source by Neil Smith

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