Many people have bad credit because of charge-offs, late payments, repossessions, bankruptcy, judgment and other factors such as overdue medical bills and delinquent credit card accounts. You don’t have to wait for seven to ten years before you can start enjoying credit items again. You can erase negative items from your report and fix your credit report. Fixing bad credit is a simple process and you can do it yourself. Here are the steps to cleaning up bad credit and establishing good credit.
1. Order Your Credit Report
The first step you need to take is to review your report to find out what it says about you. To obtain your report you need to contact the three major credit reporting agencies: Experian, Equifax and TransUnion. You can get a free copy once a year from each of these agencies. You can also get your report at no charge if you were denied credit due to information contained on your report.
2. Examine Your Credit Report
Take a close look at the entries that are made in your report. Carefully go through each entry, look for inaccurate items and then write down any errors that have been reported to the credit bureau. Credit reports often contain errors such as payments that have not been reflected, accounts or entries that are still in the dispute process, and even negative entries that belong to someone else with a similar name. In some cases, there may be inaccurate entries that are eventually attributed to identity theft. These can be uncovered by close scrutiny of the report.
3. Clean Up Bad Credit
After you have made note of the errors on your report, the next step is to take it up with the credit bureau for corrections. Send them a letter demanding that they remove the negative entries and inaccuracies from your report. If you have documents to support your claims send them also. If they find your claims to be correct, the agency will correct the entries or delete the derogatory notation. This correction or deletion will lead to better credit for you. This process usually takes a few weeks to complete.
These are just the basic steps to fixing bad credit. There are many more powerful strategies you can utilize to get rid of negative entries on your report.