How to repair your credit report (DIY)

The first step to repair your credit report is to get a copy of your credit report to verify there are no errors. However, if you do find errors, you will want to dispute them right away. Meanwhile, you will want to make your payments on time and pay off debts, collections and judgements.

Let’s look at some ways you can repair your credit report yourself. 

Read through to the end of this article for some uplifting, motivational and inspirational information!

Were you rejected after your credit report was obtained?

If you were:

• Shocked you got rejected for a loan,
• Surprised you didn’t get the best interest rate
• Frustrated you didn’t get the job you wanted after a potential employer ran your credit
• Couldn’t rent the apartment you wanted
• Irritated your insurance rates for your vehicle & homeowners insurance is too high?

Most certainly, you need to check your credit report!

You may have good credit, however, you should still check your credit report on an annual basis to verify all information is true and correct. Above all, you will want to make sure you have not been a victim of identity theft.

Similarly, if you do not have good credit, you should check your credit report. Here is an article about “The Best and Easiest way to Establish Credit” [How to Guide]

Get Your Credit Report for FREE

You can get your credit report for free on a weekly basis through all three major credit reporting agencies as of right now due to COVID-19. This will be available through April, 2021. Here are the links to their websites below:

Experian https://www.experian.com

Equifax https://www.equifax.com/personal

Transunion https://www.transunion.com

After April 2021, the only website that will offer you a FREE credit report is at Annual Credit Report.com.

For instance, if you are able to print your report, it will be easier to highlight errors and makes notes on a paper copy. Likewise, if you do find errors on your credit report, you will need to send a copy to the credit reporting agency along with the creditor. 

Note: My experience with the credit reporting agencies is that once you close out of the window for the credit report, you cannot reopen it. You will have to wait for 12 months to pass by or get another report through the same credit reporting agency.

Credit Reports do Contain Errors

You may have a low credit score because you have errors on your credit report. Therefore, let’s take a look at some of the common errors on credit reports:

Identity Errors

• Wrong name, phone numbers or address
• Accounts that do not belong to you (It is possible that you have someone else’s account information that has a similar name or same name as you)
• Accounts showing up that you never opened – potentially from identity theft.

Incorrect Account Status

• Verify If you have closed accounts, verify that they are not open
• If you are only an authorized user on an account, verify you are not listed as an owner.
• Verify late and delinquent payments are reporting correctly.
• Review the date of payments, date opened and first date of delinquency are correct.
• Make sure you don’t have duplicate accounts. This could be someone with a same or similar name.

Data Management Errors

• Review corrections – are they correct?
• Verify collection accounts and delinquent accounts to verify they are not showing up multiple times with different creditors.

Balance Errors

• Do you have accounts that have the wrong account balance?
• Is the credit limit correct on all accounts?

How to Dispute inaccurate or old information:

Most importantly, if you find any errors as you are reviewing your credit report, you will want to dispute the information right away. Similarly, you will want to dispute the error with the credit reporting agency and also the creditor.

Certainly, I am here to help you if you have questions about your credit report or disputing errors. Get in touch.

Dispute errors on credit report

First you will want to print a copy of your credit report.

Second, circle all of the items that are not correct on the report.

In addition, make copies of the report along with a letter stating the errors.

Certainly, make sure you have an original copy for yourself.

After that, mail it, as certified mail to the credit reporting agency (Transunion, Experian or Equifax) that has the error.

How to dispute errors with a creditor

First you will want to print a copy of your credit report.

Second, circle all of the items that are not correct on the report.

In Addition, make copies of the report along with a letter stating the errors.

Certainly, make sure you have an original copy for yourself.

After that, mail it, as certified mail, to the creditor that made the mistake.

Be Aware of Scams

According to the attorneys at the FTC (Federal Trade Commission) & the National Consumer Protection Agency, they have never been aware of a legitimate credit repair company. You need to be aware of businesses trying to take advantage of you! Here are some examples:

“Credit Problems, No Problem!“
“We erase you liens, judgements, or bankruptcies from your credit report”
“We erase you bad credit”
“Create a New Identity”

as seen on tv commercials or advertisements on the radio

THESE ARE SCAMS!!! Please save your money!!

According to the FTC, nobody can legally remove information from your credit report. 

Unfortunately, there is no quick fix. Just time passing and your hard work making your payments on time and/or paying off debts that are on your credit report. 

How long does negative information stay on my credit report?

Bankruptcy -10 years

Judgements, liens – 7 years

How do I get a better credit score?

It takes time to repair your credit report. The best thing you can do, is follow these steps below so you can start increasing your credit score. 

1. Most importantly, make all your payments on time.
2. Subsequently, pay off your credit card balances each month. Experts say do not spend more than 30% of your credit limit or it will negatively affect your credit score.
3. In addition, pay off any judgements, liens or collection accounts.
4. A long credit history will help your score. This means over time as you take out mortgages, loans and credit cards, along with making your payments on time, your credit score will increase. This shows you are responsible with making your payments on time and that you are a good credit risk.
5. Ultimately, only apply for credit you need. If you are applying at many different places for credit, in a short period of time, this adversely affects your credit score. It looks like your financial situation has turned for the worse and you are in need of money.
6. Most important, create a budget.

What is an excellent credit score?

Here is an example of the credit scoring system using Fico. A credit score of 800-850 is exceptional credit and you will get the best interest rates for all your loans!

The awesome benefits of a great credit score

1. You get the best interest rates on personal loans for cars, boats, trucks etc.! (your low interest rate keeps your monthly payment lower than if you had a higher interest rate)
2. Certainly, you will get the best mortgage rate for your new home!
3. Above all, you will always get what you really want to purchase! Never get denied!
4. Similarly, you will get the apartment you want to rent!
5. Likewise, you will have lower insurance rates for your home & automobiles!
6. Most important, you will get the employment you want!!! (Employers can, with your authorization, pull your credit to see how responsible you are with your money)

In conclusion, now is a great time to start a new financial adventure! Take a risk, become bold and daring! Start a new life by enjoying the simple pleasures in life instead of the most expensive things in life.