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Credit repair is a process in which consumers with bad credit histories attempt to re-establish their credit-worthiness. The process usually involves procuring a credit report from the rating agencies and then taking appropriate steps to address any apparent issues such as errors, omissions, misinformation, misreporting, or misinterpretation.

A consumer can then formally dispute those errors or issues which unjustly distort their financial healthiness and credit-worthiness.

Consumers are entitled to a copy of their credit report legally, if they have been denied a credit card or loan and if the information provided on the report is inaccurate, an investigation relating to true facts is necessary for a credit repair.

Tips for Credit Repair

You can get the credit reporting agencies to help you instead of hindering your excellent credit quest with these tips:

• Request your credit bureau report
  
  
• Review all the entries carefully, while checking for discrepancies
  
  
• Dispute wrong and missing entries by contacting the companies
  
  
• You can pay a credit repair company if for any reason you prefer they review your credit history or your credit card debt
  
  
• Beware of financial institutions requiring you to pay upfront for such services or promising debt relief
  
  
• Companies who advise you not to contact the credit bureaus directly to get your information are also suspicious
  
  
• If you prefer to repair your credit by yourself, make sure to send your disputes using certified letters
  
  
• Include copies of supporting documentation that help you to correct an erroneous entry on your credit report
  
  
• It is not necessary to dispute every credit item on your consumer report if you do not want, but those affecting your credit card debt
  
  
• Do not forget to send a copy of your letter for each disputed item to the three national credit bureaus
  
  
• Keep a record of the number provided by every credit bureau for follow up reference

Beware of Credit Repair Scams

Here's the good and bad news of credit repair, according to the U.S. Government - nobody but you can repair your credit. If you do respond to one of these credit repair offers, here's what to look for to know it's probably a scam:

• The company wants you to pay for credit repair services before they provide any services.
  
  
• The company does not tell you what your legal rights are and what you can do for yourself.
  
  
• The company recommends that you do not contact a credit reporting company directly.
  
  
• The company suggests you create a new credit identity and then a new credit report by applying for an Employer Identification Card to use instead of your Social Security number.
  
  
• The company advises you to dispute all information in your credit report or take an action that seems illegal - such as creating a new credit identity.

The truth is that no one can legally remove accurate and timely negative information from your credit report.

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