With millions of Americans drowning in bad credit reports, one can understand why they’re so many suspicious credit repair services, using questionable and sometimes illegal tactics. Your desire to fix your poor credit is possible, and you can get it done all by yourself. We have listed 6 simple to follow steps, for those seeking the best do it yourself credit repair route.

If your student loan is overdue, or your credit card balance is close to the limit, chances are you have a low credit score. Your FICO score can help, or hurt your credit worthiness in the yes of bankers, especially when you’re seeking new loans.

The restrictions on your financial ability when you have bad or spotty credit can be daunting. While it’s still possible to get a new or used car loan, or even a mortgage with poor credit, most lenders would charge higher interest rate to compensate for the added risk.

Unless you take urgent steps to start correcting the flaws in your credit report, you’ll find yourself paying a lot more for everything. I am not a fan of even the semi-legitimate credit repairs services, as most of their claim to having a credit repair magic wand, is just an illusion.

Here Are The Basic Steps on How to Recover From Bad Credit

1 – You Need to Take Stock of Your Financial Situation

Before you can start fixing your credit, you’ll need to know exactly what is on your credit reports. Guessing would not be sufficient, as you need to see and read the actual reports, from all the three major credit report agencies, before you can get started. By congressional law, you’re entitled to one free credit report from each agency at least once a year.

They’re also required to provide you a free report anytime some lender denies you new credit of any kind. The three major credit reporting firms created a website www.annualcreditreport.com to help streamline the process. You can also get your reports by calling this toll free number 1-877-322-8228.

While you might come across other firms offering free credit reports, most of them are back-loaded with numerous offers, that can cost you hundreds of dollars if you do not look closely at the fine print. Even the Federal trade commission (FTC) have put out warning signs, that these offers are mostly deceptive.

Sadly thou, this free credit reports guaranteed by law, would not contain your FICO score, which is one of the biggest metric you need to know about, if you’re trying to apply for a home mortgage loan. Your credit score pretty much determines what you interest rate on your new home loan would be.

Credit scores can range from 300 which is probably the lowest, to 850. The higher your credit score, the better your credit profile in the yes of money lenders. Sadly enough, your ability to make timely monthly payments is now equated with character. Some jobs will not even hire you, so the next steps of correcting inaccurate information is crucial.

2 – You Need to Start Disputing Errors

Once you have access to all your credit reports, look close at each item to ascertain if there are any errors. From my experience, rarely do all three reports contain the same accurate or misleading information. One credit bureau might have you paying on time on your student loan, while the other two might have you paying late, a couple of times within the past year.

Each item on your credit report comes with a number, which you’re going to include in your credit dispute letter to the agency in question. Let me let you in on a little secret, by law credit bureaus are required to investigate your disputes in a timely manner.

On the other hand, lenders that have filed lateness report on your behalf are over-whelmed with work, and that is where you can get very lucky. If your loan is current, but you made some late payments in the past, included them in your dispute letter. Most lenders would not bother to reply, if they see your loan is currently maintained with timely payments.

You also stand a better chance of getting those late payments removed, if your loan is paid in full. Every little negative information you can have removed from your credit profile, moves you FICO score in the upwards trajectory, and that my friend is what your ultimate goal should be. Below are the address, and phone numbers for each of the major credit agency with clout:

Experian mailing address for dispute requests is:

P.O. Box 4500
Allen, TX 75013
TransUnion: 800-916-8800
https://dispute.transunion.com

Return Dispute form to:
TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19022-2000
Equifax: 800-685-1111
https://www.ai.equifax.com/CreditInvestigation/home.action

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374

You can file your dispute online, or your can print out the form at the firms website, and then mail it. Recently, it was discovered most of consumers complaints where routed to other countries, and I suspect same would happen to your online filled dispute form.

Better to fill out the form completely, making copies if you need additional space to input data. Keep one set of records for your self, while you mail the other one registered mail, with return receipt requested. Your dispute will be handled with upmost care, if you take the time to make sure someone signs for it at the credit agency.

3 – Try to Contain the Ongoing Damage

While waiting for response to your filed disputes, it’s time to start taking some concrete action to put your financial house in order. Try to pay all current bills on time from now on. Mail your payments at least one week before the due date, or you can easily setup online payment solutions.

4 – Consolidate or Pay Down Debt

This might not be possible for most people, but if you can, try to pay down debt by consolidating all of them into one small lump-sum payment that you can afford. You’ll get a lower rate on a home equity loan, than on your credit card. In fact, the second mortgage can be setup for the proceeds to go directly to the credit card companies. Once all your debts are consolidated, your FICO score should move up, tremendously.

5 – Say No to New Credit

If you’re trying to “rob Peter to pay Paul” it will eventually catch up with you. Better to realistically analyze your true financial picture, instead of always seeking new credit. Amazingly, most people are unaware of their true take home pay. Physically write down how much you take home after all the taxes have been taken out. Now write your expenses next to it, and see if they balance.

6 – Now Live Within Your Means

How long before it catches up to you, if you keep living beyond your means. Contrary to what some might think, buying more stuff does not create happiness, neither does it make people like you more. Trying to keep up with what your friends are doing is the surest way to financial poverty, regardless of how much you make.

If you cannot save any money when you have just a little salary, chances are you’ll not be able to save a dime with a higher salary. Spending is a habit, and until you learn to control it, fixing your bad credit might just be a temporary solution.

Conclusion

You can turn to a reputable credit management agency for help in consolidating your debts, and managing your finances.

Check any firm out thoroughly, before signing on the dotted line. Do it yourself credit repair will not deliver over-night positive results, but consistently following some of the tips listed above, is the surest and cheapest way to get your financial life back in order.

The steps to take to fix your bad credit yourself has been listed, the next move is yours to make, and hopefully you’ll do it soon.