5 Steps to Credit Repair

Debt is a growing concern all around the world and millions of individuals have found themselves in debt. This debt significantly damages credit scores as it brings the rating further and further down. In order for those individuals to rebuild their credit, there will be some significant credit repair needed first. There are several steps that are necessary in order to remove those negative marks and rebuild credit. The following five steps are the most common and very important ways to start the credit repair process.

1. List Your Debt Information

Most individuals find it's easier to start by eliminating the debt that is causing so much damage to their credit scores. Start by creating a list of the debt which has accumulated against you.

  • Each debt or different bill you owe which may be on your credit report.
  • The amount of money you owe on the bill and when it's due each month.
  • The minimum amount due every month.
  • The interest rate if it's a loan or credit card bill.

When you have this information, you can pay off your debts more easily. Begin with the highest interest credit rating and pay as much as you can afford to pay. It will be necessary to pay at least the minimum amount of payment on the remaining bills. By doing this, you are setting the ball rolling for credit repair and for rebuilding your good credit.

2. Report As You Pay

As each bill is paid off in full, retain all receipts and then notify the three major credit bureaus. These include TransUnion, Experian and Equifax. This is to make sure that they have the most updated information about your bills so that your credit report will be accurate and will reflect what you have paid off. Enclose the receipts for payment and any paid-in-full slips you may have. The addresses to the credit bureaus are:

  • Equifax – P.O. Box 740241 Atlanta, GA 30374 – 1-800-685-1111
  • Experian – P.O. Box 2002 Allen, TX 75013 – 1-888-397-3742
  • TransUnion – P.O. Box 1000 Chester, PA 19022 – 1-800-888-4213

As you report, your credit rating will increase or stop dropping.

3. Use One Credit Card Only

While credit cards are one of the easiest ways that individuals get into debt, they are also useful tools for rebuilding credit if they are used properly. In order for this to work, you must purchase only things you plan on paying completely off at the end of the month when the statement comes in. This can help repair credit problems significantly if used properly.

4. Don't Have Your Credit Report Checked Often

When you apply for credit in stores, with credit card companies, for housing or something similar – most of the time your credit will be checked. While many people don't know this, the truth is that this process can even damage your credit. The inquiries become part of your credit report and can make potential future companies weary of your status and whether or not you can be trusted to pay.

5. Maintain Your Good Status

Once you have started repairing your credit, maintain what you've done. By exercising control of your spending habits and ensuring that each monthly bill is paid on time, you can help maintain the work you've done to rebuild your credit. Credit repair can sometimes be a long process, but will pay off if you stick to a precise plan.

Having excellent credit can help you in the future if you want to purchase a home, a car, or something different. The methods in this article explain how individuals can get credit card debt relief and repair their credit ratings.

If you are having problems with debt, contact a lawyer who can help.

Get Professional Help
Get debt relief now.
We've helped 205 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please enter a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Please enter a valid Case Description
Description is required

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you