Credit Repair

Regardless of how bad your credit is, you can take steps to improve it. Below is a brief outline of things you can do starting now. While detailed explanations are beyond the scope of this outline, there is plenty of detailed information available as you search this site.

1. Start by understanding that there are no quick fixes. Companies regularly target consumers who have poor credit and promise to clean up their credit for an upfront fee. The truth is that no one can remove accurate negative information from your credit report. Your goal is to improve your credit score and this will take time.

2. Forget the past and start paying all of your bills on time. Not all creditors look at your credit history the same way. Some may look only at your more recent history and they may give you credit if your bill-paying history has improved.

3. Immediately reduce the number of credit cards you carry. Ask your creditors to close your accounts and report the change to all three credit-reporting agencies. Additionally request a reduction of the credit limits on your accounts in order to lower your amount of available credit. The total amount of available credit is considered by lenders even if the balances are zero.

4. If possible, avoid filing bankruptcy. A bankruptcy stays on your credit report for up to 10 years.

5. Start re-establishing good credit. Ask a family member or friend to co-sign for a small loan or credit card. Make sure those payments are made on time.

6. Additionally, get a secured credit card. You will have to keep a set amount of money in an account sufficient to cover your charges. Make sure those payments are made on time.

7. Take advantage of every opportunity to get a free credit report. Scour it for any errors. Each of the nationwide consumer reporting companies is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

Additionally, you are entitled to a free report if a company takes “adverse action” against you, like denying your application for credit etc.

The Fair Credit Reporting Act allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. If an investigation doesn’t resolve your dispute, you can ask that a statement of the dispute be included in your file and in future reports.

For additional information about how to improve your credit score, finding the answers to many of your credit questions and finding legitimate resources for low or no-cost help, feel free to browse many of the topics on this site or visit www.ftc.gov/credit