1. Get Your Credit Report
The first step is to get your credit report so that you know what needs repair.

2. Review Your Report for Negative Items Which Can Be Disputed
Once you get your report, the next step is to review it for negative items which are open to dispute. Look for items such as:

Incorrect personal data such as names and addresses
Accounts with inaccurate information
Duplicate accounts
Missing accounts
Late payments or delinquencies
Inaccurate reports of late payments, bankruptcies, or foreclosures
Fraudulent activity
Accounts that were closed by the provider rather than by you (listed as “closed by grantor”)
A significant percentage of credit reports contain errors, so you may be surprised by what you find.

3. Contact Credit Bureaus and Creditors to Dispute Negative Items
The next step is to dispute any items you think are open to review. You should contact the three major credit bureaus by mail. The reason why you want to do this in writing is to ensure a paper trail.

Experian

P.O. Box 4500

Allen, TX 75013

800-916-8800

https://www.experian.com/blogs/ask-experian/credit-education/faqs/how-to-dispute-credit-report-information/

Equifax Information Services LLC

P.O. Box 740256

Atlanta, GA 30374-0256

866-349-5191

https://www.equifax.com/personal/credit-report-services/credit-dispute/

TransUnion Consumer Solutions

P.O. Box 2000

Chester, PA 19016-2000

800-916-8800

https://www.transunion.com/credit-disputes/dispute-your-credit

You should also contact the creditor or lender involved in the dispute. They may be able to correct an item for you. The correction may take 30 to 45 days or more to appear in your updated credit report.

4. Pay Off Any Late Items and Make Timely Payments Going Forward
Because late payments can have such a negative impact on your credit score, paying off late items is a priority for fixing your credit. The damage late payments do to your credit score increases the longer they go unpaid, so pay off any late items as soon as possible, and get in the habit of paying bills on time going forward.

For items that have been referred to collection agencies, you may be able to arrange to have the account reported as paid in full in exchange for a full or partial payment agreement, an arrangement known as “pay for delete.” However, a pay for delete arrangement doesn’t necessarily remove an item from your report, it only shows that you arranged to pay your debt. This can make creditors look more favorably on your credit report, but it won’t erase the item entirely. If you do seek a pay-for-delete arrangement, make sure you get an agreement in writing from the collection agency, or you run the risk of them taking your money without following through on reporting the payment.

5. Pay Down Accounts with High Balances
High balances are another major item that can drag your credit score down, and paying them down can be a route to improving your score. When paying down balances, be strategic. Consider how much cash you can afford to put toward paying down debt without disrupting your budget. A general rule of thumb is not to allocate more than 20% of your monthly income toward debt repayments so that you still have enough left over for other bills and expenses. However, this may vary with your situation.

Also, consider which balances you should pay down first. Paying down balances with high-interest rates can save you money in the long term. Alternately, you may elect to pay off cards with low balances so that you can see your progress and get a sense of momentum.

6. Open a Mix of New Accounts Gradually as Your Credit Improves
Following the steps above should start to improve your credit. As your credit improves, if your credit portfolio has a limited range of types of debt, opening up new accounts can raise your score.

However, avoid the temptation to use your improved credit to apply for an excessive number of new accounts, which can hurt your score. Instead, be selective about which types of credit you apply for, and open new accounts gradually. For example, many banks offer secured credit builder loans that are easy to qualify for and designed to help you rebuild your credit.

7. Keep Accounts Open
Because the age of your accounts counts toward your credit score, keeping accounts open can help boost your score. Once you open an account, don’t close it unless there is some compelling reason. However, if you’re not using an account actively, be sure to keep an eye on it periodically to make sure you’re not being billed any fees in the fine print.

If you have negative information on your credit report, how do you deal with it? To understand your options, you first should understand how long different types of negative information stay on your report. You then can address how and if you are able to request the removal of the negative information. Here are some key things to know.

Credit report information is classified as either “positive” or “negative.” Positive information includes items such as bills paid on time. Negative information includes items such as late payments, third-party collection actions, loan defaults, bankruptcies, and foreclosures.

In general, negative items remain on your report for seven years. However, this varies with different types of negative items:

Late payments remain for seven years after the original delinquency date
For accounts that the creditor has written off as a loss (charge-offs) or has referred to a collection agency, negative information remains for seven years after the initial missed payment.

For bankruptcies, negative information can remain on your report for 7 to 10 years, depending on the type of bankruptcy
Other negative accounts, such as repossessions, can remain up to seven years from the first missed payment.

Closed accounts which have been paid as agreed can stay on your report up to 10 years after the account was reported by the creditor.

Open accounts paid as agreed remain as long as the account is open and the creditor continues reporting it.

In addition, hard inquiries into your credit score can remain on your report for up to two years.

You can’t remove negative information from your report, you can request that the credit bureaus or your creditors remove inaccurate negative information. You can’t remove negative information which is accurate and has not been on your report long enough to qualify for automatic removal. However, you can request the removal of some types of negative information:

The information that has been on your report long enough that it should have been automatically removed.

The information that appears multiple times.

Negative items that result from identity theft.

For items that have been turned over to a collection agency, you may be able to negotiate a pay for delete arrangement with the agency to accept a payment of your debt in return for reporting your account as paid in full. This will not remove the delinquency from your report, but it may reduce its impact and make financial providers see you as less of a credit risk.

Fixing credit on your own is an option. And any ethical credit repair company will tell you that.

“If your situation is simple, and all you have are an obvious error or two, you may want to try a round of credit repair on your own"

When trying to fix your credit, be clear and concise in your disputes with the three major credit bureaus. And get your documentation in order. You can mail a dispute letter or you can submit it online at each of the credit reporting agencies’ respective websites.

Remember that you need to dispute each error with each bureau. No bureau will clean up your credit report with its competitors! Find more about DIY credit repair here.

If you decide to hire a credit repair company or a law firm, such as Powr Credit Consultants, to help repair your credit, make sure you’re working with a reputable and ethical company.

Don’t worry, it’s not difficult at all. We will show you everything that you need to know. In less than a few hours.