Are you having credit problems? Is there something from your past that is haunting your financial present, such as bankruptcy, a string of late payments or unwise use of credit? Now is the time to "get real" (to borrow a phrase from Dr. Phil) about your credit and delve into the not-so-fun world of credit repair. Below, we'll explain a few steps to repairing your credit.
First, review your credit report. Contact each of the three major U.S. credit bureaus (Equifax, Experian and TransUnion) and ask for a free copy of your credit report. New laws entitle you to a free report every year from all three of these credit bureaus. Also, if a creditor has denied you any credit in the last month, you can get a free credit report from those three bureaus.
So, are you surprised at what you see? If there are any errors on your credit report, here is what you can and can't do. Unfortunately, if those "errors" are actually truths that you just wish were mistakes, it's illegal to take them off of your credit history. However, you can legally dispute outdated items or errors at no cost. Simply submit a dispute form directly and quickly to the credit bureau.
Beware of businesses that loudly proclaim to be "credit repair" gurus. There are many such companies that charge exorbitant (really, really high) fees to help you get rid of bad credit or credit report errors. Why waste thousands of dollars when you can do something yourself? There's nothing secret or special that a repair-your-credit outfit can do that you can't take care of yourself.