How to Repair Your Credit on Your Own

Low credit scores make loans inaccessible or expensive. Sadly, they are not always fair. Mistakes on credit reports drag FICO totals down, making borrowing complicated. Despite the popularity of credit fixing services, you can remove false entries by yourself. Discover key steps to success in our article.

But first, what does ‘poor score’ mean? The FICO range is from 300 to 850 points. Many lenders consider borrowers risky if they have less than 700. The requirements and scoring methods vary, but the consequences of poor scores are far-reaching. These are rejections and outrageous interest rates.

When you repair the score, borrowing becomes easier and more affordable. Doing it by yourself is free. Obviously, trusted repair professionals can achieve results faster, but their rates vary. Compare the best credit repair companies on creditfixed.com first — you may find an affordable package ideal for your case.

1. Collect the Reports

If the total is less than perfect, there must be negative items on your reports. Thus, the first step is to collect them. Note that every lender may send their data to only one major bureau, and the agencies do not share information with each other. This means you should obtain a copy from all three major sources (Experian, TransUnion, and Equifax).

By law, you can do this for free once a year. Head to www.annualcreditreport.com or dial 1-877-322-8228. Any other websites promising to provide free reports are shady. Alternatively, you may install a special app for score tracking. For example, Credit Karma or Credit Sesame will show you where you stand.

2. Pinpoint the Inconsistencies

Study the reports carefully line by line to find any inaccuracies in the entries. Then, you can dispute the errors to have them removed. Naturally, bureaus will only delete information proven to be false. If you find that the score is your fault, you need to rebuild your credit history by becoming a responsible borrower. When examining your report, pay attention to the following:

• Your name
• Your address
• Your social security number
• Borrowing history
• Credit card list
• Outstanding debts
• Large purchases

Suppose you find something that should not be there, like a false tax lien or a dubious charge-off. Highlight these items in a copy of the report. Collect evidence to prove that the entries are inaccurate. Otherwise, bureaus will not take any action. Gather copies of bank statements and other proof.

3. Dispute the Mistakes

Now, you can start formal communication to have the errors erased. Compose a letter to the bureau whose data is incorrect, explain the mistake and include solid proof along with a copy of the report itself. Some agencies may allow you to open a dispute online, but it is always better to have hard evidence of this communication. Therefore, send your letter by certified mail and keep a copy of it.

Then, wait for a response. After your letter is received, the bureau has 30 days to react. Repeat the procedure for every other inaccurate report. You may find useful guidelines on the official website of The Federal Trade Commission.

4. Scrutinize Your Spending

Deletion of errors fixes your score immediately. However, it is also important to develop healthy financial habits, so you do not overspend. If bad credit is a consequence of your own miscalculations, take care of the following:

• postpone applying for more loans;
• make sure no bills are overdue;
• pay off any debts (especially credit card debts, as they are recurring).

Today, there is a wide range of tools for personal budgeting. Tax returns for the past two years will give you a starting point — the size of your annual income. Until you learn to spend less than you earn, your credit situation will not improve. Even if you think your habits are reasonable, try subtracting all regular expenses from your income — you may be surprised.

The Bottom Line

Credit repair is a complex process. You may spend months disputing the mistakes before the score finally grows. There is no denying that fixing the errors by yourself is a hassle, but it is not impossible. By law, every US citizen is entitled to a free copy of their reports every year. Collect your data, identify the flaws, gather evidence and contact the bureaus.

If you need professional assistance, credit repair firms will be happy to help. You may delegate correction, but be wary: this industry is laden with scams. Choose companies based on their reputation, BBB ratings, professional reviews and feedback from real customers.