Beginning Credit Repair Without Buying the Book: Do-It-Yourself Guide

Are you overwhelmed with prior medical bills? Is your credit so bad you can't buy a home or even a used car? Were you turned down for a good job because of credit problems? Don't give up; there is hope. You can find all the information to repair your own credit with a little help from someone who has been there. Taking the first step is always the hardest, and yet it's easy to do with the right information.

This article will take you step by step to start your own credit repair process. It includes how to find out what is on your credit, how to request all information or have it removed and begin your journey of credit stability. But you have to be ready to follow through from beginning to end and sometimes it can take months or even a few years. You must be patient, persistent and confident of your ability to pursue a better life style.

Your first step is to gather all your information into one place. Gather all the bills, demand letters, collection letters and place them in a box. Put on the lid and relax for a few minutes. You feel overwhelmed at this point, but most of the paperwork in the box are duplicates. For now you aren't going to worry about all the letters and each time a new one arrives you will add it to the others. We will deal with the box later.

Now you need to get a copy of your credit report. There are three major reporting bureau's. They are Equifax, Transunion and Experian. This will give you a complete accounting of what is being reported both good and bad. If there are good items on your credit report you will want to leave them alone. We are going to challenge everything that brings your credit score down.

You are entitled to a free credit report each year or each time you are turned down for credit. So go to

You can also write for the information to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281. You must write a formal letter requesting a copy of your full credit report along with copies of your social security card, drivers license and current physical address. If it is incomplete it will delay the process, but you will receive a letter requesting the correct information.

Once you get a copy of your credit report check it carefully using a highlighter pen for double reporting of the same account, double reporting of an account by two different agencies or accounts that do not belong to you. In other words anything that is bringing your score down mark it and make a small note to the side so you know why it's marked. You may recognize many of the items especially if it is medical, but you are going to mark it anyway.

Now you are ready to write your dispute letter. It is to be professional. Make sure your sentence structure is correct, your spelling is perfect and it is legible. Use spell check, use the help of friends and read it over at least five times before you put your final signature on it. It must be a perfect letter so there is no misunderstanding of your request.

Start your letter with the date, your full name and address, phone number and the name of the company you are writing too. In your letter request information and proof on the following items from your credit report. Add "By provisions of 15USC section 1681i of the Fair Credit Reporting Act of 1970, I demand these items be reverified and deleted from my record." End the letter with "By law you have 30 days from the receipt of this letter for the allotted time."

You will list each item by account number and company name if one is available. Write a different letter for each bureau. Recheck the account numbers several times to make sure they are correct. If they are not then write the letter again. Write slowly and do not forget anything or leave even one mistake in it. This is your future you are fixing.

You will need to include copies of your drivers license, social security card, also rental agreement or deed, pay stub with social security number, utility bill or w2 form. They will need two forms of identification and your best I.D. is the first two on the list. Keep copies for yourself.

Make yourself a copy of each letter before you mail them out. This is very important so don't forget or assume you'll get an answer. You will need your own copy to compare with the answer you receive. Send the letters by registered mail. This will be a record of receipt if there are any problems later on.

You will send one letter and I.D. copy to Equifax Information Services LLC, P.O. Box 740256, Atlanta, Georgia 30374-0256.

You will send another to Transunion Consumer Solutions, P.O. Box 2000, Chester, Pa. 19022-2000.

To dispute accounts through Experian you will need to go to

Then you wait until you hear from each one of them. While you are waiting go back to the box with all the paperwork and start clearing it out. For each account regarding a charge lay out according to company. As you open the next letter read it carefully and it's a repeat of what you already have then throw it away. You want to have only one letter for each account so it doesn't seem so overwhelming.

When you receive your answer from the credit bureau's use your original copy of your letter to compare and mark off the ones that have been deleted from your account. Next mark off the deleted items from your original credit report. The items left are the one's you are going to have to pay off or make a deal on. If you have more than one item with a single collection agency make a deal with them first.

Your first option is to pay off all the bills in the collection office for a lower amount, but you must be able to pay it off at one time. Since interest adds up quick in a collection agency try to get them to remove it for the pay off or offer one third of the total. Just remember on your credit report it will show as a settlement, not a payment in full and this can affect your score.

Your next option is to make payment arrangements for a certain amount each paycheck or each month. Do not make it so low it will take you years to pay off. Your goal is to pay off a large account within two years and a smaller account of under $1500.00 within a year. Your credit report will reflect this as a paid in full.

Call each of the other companies on your list and make arrangements for small payments until one is paid off and you can increase the payments on the others. If you can pick the smallest of the accounts and pay them off right away then do so. It may seem silly to pay off the small ones right away, but this will start to reflect zero balances within 45 days of final payment.

If there is something on your credit report you feel is truly unfair for a very good reason you have the right to add a 100 word explanation to be sent with each request of your credit. In the end you will probably have to pay it off unless you can wait the seven years for it to drop off your credit report.

If you file bankruptcy it will take ten years to drop off plus you can ruin your chances of building credit you might need sooner for emergencies. Do not file bankruptcy if you don't have to. Pay off the small bills first as fast as you can and then move on to the others.

Check your credit report annually. You will need to check for false reports, double reports or zombie credit. Zombie credit is the reappearance of accounts previously removed. If this happens then challenge it again. If there is no proof of the bill then the company reporting could be fined or sued.

We live in a society that has yet to come up with a better way to handle credit. As it is now anything reported as a past due can affect any future credit and jobs. Even basic jobs requiring only a high school degree. Eventually things will change so jobs and careers are not affected as much, but until then our credit reports rule our life and future. Even overwhelming medical of the past is not forgiven even if someone else was responsible for payment.

Check your reports, watch how you use credit cards and make sure you pay everything on time. No credit is almost as bad as derogatory credit so be smart about your financial future. Don't take on too much, but be sure you build a basic credit history towards one day owning a home. www.annualcreditreport.com/cra/index.jsp to order your free report. If you do not have access to the internet you can also get your copy by calling 1-877-322-8228. Be sure to have your information available in order to request your free copy. You will need your full name, address, previous address and social security number. It can take from minutes to days to receive the report depending on how you request it.www.experian.com/consumer/cac/InvalidateSession.do?Code=DISPUTE and follow the instructions. If you do not have access to the internet then go to your local library and use their computers. It is free and one of the best and quickest way to dispute the charges.