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Credit repair takes time and can be quite frustrating so before you begin you need to prepare yourself for the task.  For those of you needing credit repair due to identity theft or credit fraud you are undoubtedly starting your credit repair battle already frustrated and disgusted by the whole ordeal.  If your interest in credit repair has come about due to past financial trouble you are likely to be fighting a feeling of shame or embarrassment.

While these feelings are certainly normal and understandable, they will not help you accomplish your end goal which is plain and simply credit report repair.  You need to clear your mind and go into the credit repair process just like you would any other task that is unpleasant but must be done.  Consider this page a step-by-step guide to credit report repair.  Just knock them off, one by one, and in the end you will have a clean credit report.

One more thing before we get started.  If you haven't already noticed, there are many companies that offer to repair your credit for you.  At some point in the credit repair process you may become tempted to use their services but you should be aware that there are a growing number of "credit repair scams" out there and it is very easy to fall prey to any one of them.

Fraudulent credit repair companies will make grand claims that they can give you a "fresh start" by removing all negative items from your credit report, even the accurate ones. This just isn't possible.  Only credit bureaus or creditors can permanently remove items from your credit file.  In fact, there is nothing that any of these credit repair companies can do for you that you cannot do for yourself.  The steps spelled out here were written to make it as simple as possible for you to do your own credit repair.

1. Check Your Credit - The first step to repairing your credit is figuring out what exactly is wrong with it to begin with.  You may already have an idea, but in order to know for sure you should order your credit reports from all three of the credit bureaus.  (Equifax, Trans Union and Experian)  You can order them individually or all together.  Click here to learn where you can check your own credit.
    
2. Evaluate Your Situation - Once you have your credit reports look them over.  There are three potentially damaging things you should look for.
    
   • Clerical Errors or Inaccurate Data - This would include things like wrong social security numbers, incorrect mailing addresses, out-of-date employers or false account details.  Also make sure that any public records listed are actually about you.
      
   • Old Negatives - Look for old negative items that have expired and should have been removed from your credit file already.  These items would also be considered inaccuracies and should be disputed and removed.  Article: When Do Items Fall Off Your Credit Report
      
   • Signs of Credit Fraud, Identity Theft or Unauthorized Use - Here you are looking for accounts you do not recognize, unknown names, addresses or employers and unauthorized hard inquiries.
      
   • Signs of Poor Habits and Bad Money Management - These would be choices you made yourself that are negatively affecting your credit score such as late payments, collection accounts or bankruptcy.  Take a look at how many inquiries and accounts you have, what type they are and what your credit limits are versus what your balances are.  Article: How to Raise Your Credit Score
      
3. Dispute Inaccuracies - If you found factual errors in any of your credit reports you have will have to take additional steps to get the errors corrected.  Article: How to Dispute Items on Your Credit Report
    
4. Report Fraud - If you found inaccuracies that are the result of fraud/identity theft it is highly recommended that you take additional steps to protect yourself from further damage and begin the process of minimizing the affects of what has been done.  Article: How to Report Credit Card Fraud or Identity Theft
    
5. Change Your Habits - If you truly want to repair your credit you MUST commit to changing any bad habits you might have that contribute to your current situation.  There are many factors that influence your credit score, but the following have the greatest impact.  Most importantly, be patient.  Negative items in your credit report that are accurate will stay there for 7-10 years.
    
   • Late payments and Collection Accounts - Pay your bills on time and avoid having your accounts sent to collection agencies.  If you fall into hard times and cannot make a payment on time call your creditors and work something out with them.  Most of the time you can negotiate something reasonable that will keep your account from being sent to a collection agency.  The worst possible action you can take in this situation is to do nothing.
      
   • Keep your credit card account balances below 35% of your credit limits.  (If you have a $1000 credit limit you should try to keep your balance below $350)  If your debt levels are above 35% of your available limit, STOP using them and create a payment plan to reduce your balances.  Click here to discover the most effective way to pay down your debt.  If you find yourself in a situation where you are having to charge groceries or utility bills just to make it by each month your situation will only get worse if you continue.  It is essential that you stop charging.
      
   • Do not cause your credit to be checked too often by applying for a lot of credit in a short period of time.
      
   • Keep your oldest accounts open and in good standing.
      
6. Monitor Your Credit Files - Check your credit again every 30-60 days after disputing errors and managing your finances to see how much your credit scores have improved. If any inaccuracies remain, continue to negotiate to have them taken off your credit report or corrected. Once everything seems to be in order you can start checking your credit less often but you should keep monitoring your credit to keep things from getting out of hand.  Here again there are companies that offer to do this for you.  They will routinely monitor your credit reports for you and notify you of any changes you should be aware of.  Daily, weekly or quarterly monitoring isn't for everyone so at the very least you should plan to check your own credit reports from each of the three credit bureaus every 6-12 months to ensure that the information is accurate and up-to-date.  See Article: How to Compare Credit Report Monitoring Services
    
7. Save Everything - Finally, you should keep copies of your old credit reports, letters of dispute and certified mail receipts in a safe place for future reference.  Make a log of all phone conversations related to your credit repair efforts.  (The number you called, who you spoke to, when you called, what was discussed.)  Get all promises in writing and save those as well.

Persistence is the key.  Don't give up.  Having a healthy, clean credit report and a high credit score gives you more than just bragging rights.  It also gives you bargaining power when it comes time to borrow money.  Higher credit scores mean lower interest rates which will save you hundreds to thousands over the life of a loan.  Stick with it.  You can do it.

If worse comes to worse, you can contact a law firm that specializes in credit repair to assist you with the process if you think you need help or have had no success in disputing inaccurate items on your own. Lexington Law Firm provides credit repair assistance, and is a participant in the BBB Online Reliability Program.