A pre-requisite to a credit report repair process is a 3-in-1 credit report, which includes information from the three main credit bureaus of a country. You can choose to undertake credit report repair through the following options:
Hire an expert: This would preferably be an attorney who knows the credit laws thoroughly. Alternatively, you can opt for a credit repair firm who has been in business for the past five years or more.
Do-it-yourself: You can take help of a good quality guide and do the repairs yourself.
Whichever option you choose for undertaking credit report repair, here are a few tips that will help you complete the process safely:
Do not hire a credit repair company that advises you to create a new credit file. If you do so, you would be participating in credit fraud and will be subject to legal repercussions.
Read the Fair Credit Reporting Act (FCRA). This will give you an idea of your rights while you go through the credit repair process.
Get yourself organized. The only way to improve your credit report is through hard work and long-term commitment, since there is no overnight fix.
If you opt to hire an online service, you could be offered three payment plans, one-time fees, monthly payment or every deletion or correction plan. It is useful to opt for the monthly fees plan, since through this you will have the flexibility to cancel the contract whenever you want.
When dealing with creditors, collection agencies or credit rating agencies (CRAs), always act in a cooperative and professional manner.
Do not make threats, however subtle, when your dispute letter is rejected by your CRA.
While paying off your outstanding debts, do not neglect accounts in which timely payments are being made for accounts that are not. Continue with your timely payment schedule on all your current accounts.
If your debts are excessively high, creditors have refused to cooperate with you and you cannot seem to come up with a payment plan, you must opt for consumer credit counseling to get back on track.