Repair Your Credit
If you have some past credit issues and you want to try to repair your credit yourself, there are steps you can take in the process that will eliminate confusion and give you a higher, more intimate awareness of your own credit report and credit score at all times. The process can be intensive and time-consuming, requiring a good deal of patience, and often expert advice. You need to know how to go about:
- Contact the reporting agencies
- Writing letters and gathering information
- Dealing with collectors and agencies
- Knowing your rights and obligations under the law
Contact the Major Reporting Agencies
There are three credit reporting agencies that are primarily responsible for your overall credit score. People who you owe money to may report information about your account to any or all three of them. The three agencies are TransUnion, TRW, and Equifax. They can be contacted online or via postal mail, and by law must provide you with one free copy of your credit report per year. Get this report from them and review it for accuracy.
Writing Letters and Gathering Information
Once you've received copies of your credit report, you can write to back to the reporting agencies to dispute any negative information on your report. When writing, you should include the account number and name of the creditor that put the item on your report in the letter. The agencies will investigate the matter and it may be removed from your credit report.
Dealing with collectors and agencies
Some items on your credit report may have to be dealt with by calling the collection agencies that are pursuing you for repayment of a debt. When you contact them, their focus will be on getting you to agree to pay for the debt. If the debt is valid, you should work with them to set up a comfortable payment plan with them that you can afford. Do not lie to them or make promises you cannot keep as that will not help your credit score or make it easier to deal with them later. Most importantly when dealing with collection agencies is to never give them access to your bank account over the phone or at any time, as some of them may use that information to drain your account of all that you owe. Also, make sure that any arrangement you make with them is made in writing and received by you before sending them payment.