Credit Repair: A Comprehensive Guide What is credit repair? Credit repair is the active process of improving your credit score and credit history through multiple efforts. It can be a complex and time-consuming process, but it is possible to do it yourself. This is a multiple process that will require some time and commitment but I am confident that with a few small steps, you will see improvement on your following monthly report. Why is credit repair important? Your credit score is a three-digit number that lenders use to assess your creditworthiness. It is based on your credit history, which includes information about your past borrowing and repayment habits. Three different agencies currently determine your credit score based on different factors. Those three agencies include Experian, Equifax, and Transunion and all can be equally important in determining if you qualify. Different numbers can reflect, depending on the type of collateral and other factors. This is often a bit confusing as you may see one number when pulling your score but be told something completely different when applying for credit. It is important to make sure that your credit monitoring is either done directly through the agency you are looking to improve the score of or through a monitoring agency that uses the same FICO model. A good credit score can help you qualify for lower interest rates on loans and credit cards, and it can also make it easier to rent an apartment or get a job. How does credit repair work? Credit repair involves reviewing your credit reports for inaccurate or incomplete information, disputing any errors, and taking steps to improve your payment history and credit utilization. What are the steps involved in credit repair? 1. Get a copy of your credit report. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year at annualcreditreport.com. This has been my favorite since I was applying for college in the early 2000s. This is a free annual report that anyone can get access to once a year. It does offer a subscription following the 1st month that you need to cancel if you do not intend to pay for another report. There may be other sites that you can access in addition to this one so feel free to shop around for a solution that best fits your needs. Just remember to verify they are using the same FICO as the asset category you are applying for. The person working with you on your purchase will be able to find out which score model they will be using. 2. Review your credit reports carefully for any inaccurate or incomplete information. This includes things like incorrect account balances, late payments that you never made, and accounts that you didn't open. This is where you can win big; if the information is not accurate you can have the negative item removed from your credit report.
3. Dispute any inaccurate or incomplete information with the credit bureaus. You can do this online, by mail, or by phone. The credit bureau will investigate your dispute and remove...