It is in fact true that many persons face the very time consuming task of repairing their own credit. Some people have made terrible decisions and have suffered consequences such as income loss, or found themselves overextending. A lot of consumers have fallen victim to unemployment in the past year and with the economy in its current state, its been quite difficult for a lot of good citizens to get back on track.
Many people have made late payments. Some others are even facing additional fees because they can’t make their monthly payments on time. The credit restoration process is not as hard as some persons may imagine it is. It does take some time and it takes making payments on time for several months consecutively.
First, you need to obtain a copy of your credit report from all three of the major credit reporting agencies. The “big three” are Experian, Equifax, and TransUnion. Its suggested to pull a credit report from all three because information may be different with each bureau which could be disputed for erroneous reporting and possibly eliminated just by submitting a simple dispute letter! Creditors are not required to report to any of the agencies, and often they will report to just one.
Having all three credit reports on hand will help make restoring your credit easier and more thorough. The FACT Act passed by Congress allows consumers one free copy of their credit report per year. To get your copy, go to annualcreditreport.com. They do not ask for a credit card to authorize or any sort of payment unless you want your official numeric FICO score which is not necessary to evaluate what’s on your credit and how its affecting you.
Once you have the credit reports in hand, go over them with a fine tooth comb. Check for any errors such as paid off accounts reporting as delinquent or accounts that you have never opened or used. This is also a good way to check if you’ve recently been a victim of identity theft. Also check for accounts in which the reporting period (7 years) has expired. If you find errors in your report it is essential that you contact the credit bureau to have your file corrected or updated. All bureaus provide the convenience of disputing items online and you can do so while reviewing your credit report.