Credit Repair

If you have a weak credit profile but are attempting to clean it up and get out of debt, credit repair is an option. It is extremely important to be aware of what is being reported on your credit report, because it may contain inaccurate or outdated information. Credit repair typically takes 6-18 months, and is a much better alternative to debt settlement or bankruptcy, which can leave long lasting, negative marks on your credit report.

The first step in repairing your credit is to obtain a copy of your credit report. You can do this by contacting the three major credit reporting agencies by mail, phone, or via e-mail. (Click here for contact information). Once you have your credit report, all information must be checked to be sure it is up-to-date and accurate. Determine the trouble spots on your credit report. If there is disputable, inaccurate, or outdated information showing up on the credit report you are able to request an investigation of the information. The best way to do this is to prepare letters and any other legitimate documentation supporting your dispute.

Credit reporting agencies have a 30-day time period (as mandated by the Fair Credit Reporting Act) to investigate the accounts in question. While you are waiting for the CRAs to respond to your requests, you can begin re-establishing your credit report by paying your monthly bills on time, opening a checking or a savings account (if you don't currently have one), and applying for secured or low-balance credit cards to establish yourself as a responsible consumer.