Credit Repair Self Help

Introduction to Credit Repair

When it comes to credit repair, especially when you find yourself in a challenging credit situation, self-help might be the best route for you to go. It seems we are bombarded daily and often with companies that claim they can help you repair your credit for a small fee, ensuring you won't have to worry about it at all. However, the truth is that self-help credit repair is not only possible but really the way to go.

Understanding Credit Repair Self-Help

It isn’t as difficult as many people might think to go about repairing your credit yourself. In fact, the newest trend in credit repair is actually the self-help road. All you need to do is start by pulling a copy of your credit report from all three credit reporting bureaus: Experian, Equifax, and TransUnion. You are entitled to one free credit report per year thanks to the passage of the FACT Act (Fair and Accurate Credit Transactions Act, 2003). The other two reports, you’ll have to pay for, but the fee is usually small – between $10 and $15. After you obtain your credit reports, the next self-help step is to go through those reports and check to see that the information is accurate. Most of the time, there are going to be errors of some type. These errors can vary from a past due account that has been paid off to a debt that wasn’t yours in the first place.

Correcting Errors in Credit Reports

If you find errors, you need to contact the credit reporting agency both by phone and in writing. You’ll be asked to provide proof of the error, and then they, in turn, are required to notify you in writing of their decision to either remove it from your credit report or leave it due to insufficient proof. Be diligent in this endeavor. An accomplished self-help credit repair program entails being aggressive when it comes to your information and the accuracy of that information. Remember, persistence is key, as credit repair can sometimes be a lengthy process.

Developing a Long-term Credit Plan

Another part of a self-help credit repair program includes the development of a long-term plan that will help you keep your credit use under control and a plan for not getting into credit problems again. Sure, credit counselors can help you do this, but why pay the money and take the chance that you are dealing with a less than reputable company? Creating a budget, monitoring your expenses, and setting financial goals are crucial steps in maintaining good credit health.

Utilizing Available Resources

Do a little research, and you’ll find that there is plenty of information available on the Internet as well as software programs that can assist you with your self-help credit repair program. Resources such as the Federal Trade Commission's website offer valuable insights and tips for managing credit effectively (Federal Trade Commission, n.d.). Repairing your credit yourself requires a commitment on your behalf, but in the long run, you’ll be pleased with the results – and knowing that you did it yourself!

References

• Fair and Accurate Credit Transactions Act, 15 U.S.C. § 1681 (2003).
• Federal Trade Commission. (n.d.). Credit repair: How to help yourself. Retrieved from https://www.consumer.ftc.gov/articles/pdf-0037-credit-repair.pdf