1. Get a Free Copy of Your Credit Report
Before you do anything, you need to know what you're up against. You can only do that by actually finding out what you need to repair. Your report will give you everything you need to know about your credit situation and is likely to throw a few surprises.
Believe it or not you are permitted a free report from the main credit bureaus.
Make sure you get a report from all of the main credit bureaus as different companies may have only registered a problem with one of them. They don't generally share information.
2. Carefully Study Your Reports
You may well be in for a shock once you actually get your reports. Don't be frightened or put off by what you see. Note the facts and check with you own information to see if it's correct. Check accounts that don't belong to you, note incorrect information about late payments but most importantly, confirm the details that you know t o be correct.
3. Start a Dispute For Incorrect Entries
You are perfectly within your rights to challenge entries in your credit report. Normally each bureau provides information about dispute resolution and you should follow their recommended procedures to start taking action. Failing that, write a letter to the credit bureau together with a copy of the report so they know what you're contesting.
4. Try To Get Past Accounts Up To Date
Your payment history largely dictates your credit score. Poor payment records or outstanding creditors can severely affect your score. Taking action here is paramount to improving your score. Contact the companies concerned and see if you can negotiate preferential payment terms. Then ask your creditor to note your account as 'current' or 'paid'. That will go a long way to removing that entry from your record.
5. Get Your Balances Down
If you've poorly used y our credit facilities in the past, make an effort to get your balance s below your permitted levels. Most don't realise that up to 30% of your credit score is related to your current debt as a percentage of your available credit.
6. Seek New Credit Opportunities To Improve Your Report
When you have managed to sort out your current problems, spend time getting positive information added to your entries. Maintain your credit balances below permitted levels and ensure that you make your payments on time.
If you can, seek new credit but don't overdo the applications. Make one application and see what happens. Repeated and failed requests for credit will go against you. Try an eloan mortgage if you think you are able to consolidate a number of debts into an easier payment plan.
7. Go to Consumer Credit Counseling
If you feel like you're sinking then seek out extra help. This is important if y our creditors aren't prepared to work with you or if you cannot come up with a suitable plan of attack yourself.
If you're interested in obtaining your free credit report to help repair your poor credit, please visit Personal Loans for more information.
By Chris, CEO of Personal-e-Loans.com
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