| For whatever reason, whether it is bankruptcy, | | | | seems to be incorrect, get a statement regarding |
| mounting debts getting out of control, or there are | | | | anything you think is reported in error. Gather any |
| erroneous reports on your credit report, your credit | | | | proof you can as to why it is an error. |
| rating is too low to get a loan of any kind. Though a | | | | 4. Dispute any bad reports you disagree with in writing |
| bankruptcy can remain on your credit report for up to | | | | to the credit bureau on plain paper and include any |
| ten years, mounting debt seems impossible to bring | | | | notarized and/or official documents of proof that the |
| down and erroneous reports seem to be cemented to | | | | item reported is in error. For multiple items, send |
| your credit report, there is a way to repair your credit | | | | separate letters of dispute as only the first one will |
| legally. | | | | really be looked at if they are all sent together. It is also |
| Actually, rebuild would be a better term but there is | | | | a good idea to not send in your dispute letters during a |
| some repair to it, especially in the case of erroneously | | | | high volume time of year, such as November through |
| reported items on your report. The best thing to do | | | | January, if it can be avoided. Processing your dispute |
| would be to hire an attorney who is familiar with the | | | | will take considerably longer during that time. |
| credit laws but not everyone can afford the legal fees | | | | 5. Make sure you pay all your regular monthly bills on |
| involved. Though it will take a lot of effort, you can | | | | time or early every month. This will help raise your |
| repair your credit yourself. Below are some tips on | | | | credit rating enough to begin taking out small loans that |
| how to repair your own credit. | | | | you can afford to repay quickly. |
| 1. Don't buy into the 'create a new credit file' scam. This | | | | 6. Be consistent in repaying any money borrowed |
| is illegal and will land you in more trouble than you want. | | | | from any institution that reports to the credit bureaus. |
| Creating a new credit file is credit fraud. Some people | | | | The better you are about paying off these debts |
| will try to sell this idea as a way to get money from | | | | quickly, the quicker your credit rating will go up. |
| desperate people looking for a way out. | | | | Eventually, you will be able to get a low limit credit card |
| 2. Become familiar with the Fair Credit Reporting Act. | | | | or even a car loan. If you are making regular payments |
| This will help you determine if there could be errors on | | | | on these, you will soon be able to get a larger loan, |
| your credit report and tell you what the credit card | | | | such as a home loan, at a better interest rate than |
| companies and loan companies can and cannot do | | | | would be possible if you just waited out the statute of |
| with regard to your debts. It can also help you avoid | | | | limitations on your bad credit. So, if your are willing to |
| future problems. | | | | work hard at it, you can repair your credit yourself |
| 3. Get copies of your credit report from each of the | | | | rather than let the credit reports determine whether |
| three major credit reporting bureaus. Go over them | | | | you can buy a house or car in two or three years |
| carefully to make sure everything is correct. If anything | | | | instead of ten. |