Time is the only thing that will "Fix" your credit report. There are NO quick fixes
The first step to rebuilding your credit is to get a copy of your credit report(s). We suggest that you get all three so that you can verify all of your information. In many cases you can order your credit reports on line. (Get Your Credit Report)
Once you have received your credit reports, review them carefully for any mistakes. The Credit Reporting Agencies are required by the Fair and Accurate Credit Transaction Act to fix any mistakes. Understand that the mistake may be on all three credit reports, so be sure to fix the mistake at all three companies
Beware of so called "Credit Repair Companies"
You may have heard of "Credit Repair", and been tempted to have your negative credit erased, however beware of their claims. Many of the services a credit repair company offers, you can do yourself for free.
Credit Repair companies charge large fees to take advantage of a section of the "Fair Credit Reporting Act", (FCRA), which allows them to dispute the credit on your report. The FCRA allows individuals the opportunity to dispute items on their credit report which they feel are incorrect. The Act directs the Credit Reporting Agency to verify the information reported with in a reasonable period, usually within 30 days. If the information cannot be verified, it must come off the report. The Credit Repair Companies, try to send so many disputes that the Credit Reporting Agencies cannot verify the information within the 30 days, so the information must be removed. Unfortunately, for the consumer, the Credit Reporting Agency can put all correct information back on the report. In addition, Credit Reporting Agencies may view the numerous re-verifications as frivolous, and not be required to investigate.
Once your credit is correct, you need to reestablish "good" credit.
Traditional Credit
Catch up with your payments on credit cards, This is where Consumer Credit and Budget Counseling, Inc. can help! By joining our Debt Management Program, many of the creditors re-age your accounts immediately. In addition the smaller payment and lower interest make keeping up with the payments easier. (Get your FREE analysis)
You may want to obtain a secured credit card. These cards require you to prepay your credit limit. While these cards can help you show reestablished credit, many of the cards may charge you a lot to use your own money. (see our rebuilding credit links)
Get a Co-Signer. A family member or a really good friend could co-sign a loan with you, but you have to keep up the payments, or you will not only ruin your own credit, but also the co-signers.
Non-Traditional Credit
Be aware that some creditors may accept non-traditional credit, such as your rent history, your utility bills, and other monthly bills. You will be required to show on-time payment with the check itself both front and back, so don't pay in cash. Hand written receipts are not accepted as they are unreliable.
If you have any questions about rebuilding your credit call one of our qualified counselors.
