Easy Steps to Credit Repair

There are alot of reasons why someone finds themselves in need of credit repair help. It seems that there are more and more people who never imagined they would need to learn how to repair credit scores. The latest housing finance crisis may have caught you and you need mortgage credit repair. The reality is hitting us all hard, but you can follow a few easy steps and get big results.

Step 1Get copies of your credit reports
The first easy step is to get copies of all three of your credit reports. You are entitled to free copies from each of the big three credit agencies once a year. Write to them and request a copy. Everything you do will be from the information you get from these documents.

Step 2Examine your reports and write letters
The easiest things to correct are the items that are errors. You may also find things that are older than 7 years old. Both these things should be easy to have removed on request. Following that, there may be items like accounts that show late payments. Often you can contact the lender and ask them to remove these items for you. Whatever you feel you can question or fight on your report should be pursued. Don't challenge everything on the report, and do not do anything fraudently. But you do have a right to ask for proof to verify that something effecting your credit is really yours.

If the credit agency can not verify the item within 30 days, they have to remove it. This can be an easy win if older records have been lost or can not be retreived within the timeframe. If you can not get an item taken off the first time, try again in a few months. Handwrite your letter and send separate letters for each item you wish to dispute. Make sure to include any documentation you can. Send a letter to each of the three agencies for each item. Credit repair after bankruptcy may take a little time but you can certainly improve your credit score. A credit repair lawyer can advise you on legal credit repair services and methods if you run into problems.

If you are currently having problems paying your mortgage due to the recent exuberance in mortgage lending, contact your lender and see what you can work out. Lenders are also suffering from the large number of defaults and many are willing to restructure loans to help you stay in your home.

Step 3Start building up your credit
You can build your credit in a few easy ways if you know what effects it. Late charges count against you, but what counts for you?

  • Pay on time. We all know that credit scores are based on paying back what you borrow on time. So do that. If you can't because you are overextended across several loans, get a consolidation loan from a credit counseling company. They can often negotiate down the amount you owe as well. However you structure it, paying on time will start to put points back on your score.

  • Create assets. Most people are in trouble because they are overextended. It's time to start building some assets instead of debts. People are always more willing to exend you credit if you are not flat broke. Make grown up choices. Live under your means and build the will to save. It doesn't have to be much to count and add up. Sell extra 'stuff' on eBay, have a garage sale, do odd jobs, write an ebook and sell it online, give up an expensive habit or hobby; and save the money. Be creative in finding a way to build assets instead of spend. We just don't NEED all this stuff and especially if we can't afford it.

  • Get a credit card. This credit card is not to buy stuff. It is to charge small things you are buying anyway and pay off immediately. If you can not get a credit card, get a pre-paid or secured card from your bank. The purpose is to show you can be trusted with credit. AND what you may not know is the amount of credit you are deemed 'worthy' of having will add points to your score. YOU MUST LEAVE ROOM ON THIS CARD. You will not get points for using the credit, you will only get points for having the credit available to you. The amount of credit you have available is what raises your score. The amount of credit that is used, pulls you down.

Learning the easy steps to repairing your credit can be a big relief and get your financial life back on track.

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