So how exactly does one end up with really bad credit? That’s a question I’ve asked myself over the years and, to be perfectly honest, I still don’t know how it can get so out of control so fast. Whether you are forgetting to pay your credit card bill on time or you simply don’t have the money to pay it off, you are going to suffer the consequences at some point.

The simple step-by-step process that I am going to show you is the easiest, most cost-efficient way to fully repair your credit score. Not only will this process show you how to repair your bad credit, but it will also give you knowledge that you can use to maintain that repaired credit score.

So many guides or consulting companies out there will offer you an “instant repair” that they claim will solve all of your problems, but you end up falling back into the same pattern you were in before because you don’t realize what got you there in the first place. It’s a vicious cycle and today we are going to break that cycle for you! So put away the credit card because that’s the thing that got you in this little mess in the first place! This is a 100% free process that will have you back on your feet again in no time!

Step 1 – Obtain All Three Credit Reports from Major Agencies

This is the simplest step, yet it is the one step that 99% of people don’t take. For some reason, people are just unwilling to take the first major step toward repairing their credit. It truly is a mystery because this step is the only one in my process that you literally don’t have to do anything other than provide some basic information about yourself and your credit history. Maybe it’s the reality of accepting the fact that you have to do something about your bad credit, instead of just pretending it doesn’t exist that really deters people away from taking this step. Who knows. Whatever the reason is, you aren’t going to be one of those people. You are going to take initiative and make this first step toward living a better life.

Lucky for you, we have already set up a link for you that will get you a free 60-day trial to CreditReport.com. There you will be able to get your credit score and credit report from each of the three major credit agencies (Equifax, Experian, TransUnion). Very simple, shouldn’t take you more than 20-30 minutes. So once you take care of that step, you will be ready to move on to step 2.

Step 2/3 – Review Reports And Take Note Of Mistakes and Negative Items

These two steps we have decided to put together to make is easier for you. These steps will probably take you some time and you are going to want to make sure you take the proper amount of time to thoroughly review all three reports.

The first thing you will want to do is check each and every account listed and make sure that all of the information is correct. If you see an item listed on one of your accounts that shouldn’t be there, write it down, highlight it, do whatever you have to do to make sure that you are taking note of incorrect information listed on your reports.

Once you have checked the report for mistakes, you are going to want to go back and do a second review for negative items. Negative items can include late payments, bankruptcies, missed payments, delinquent accounts, and other negative actions that are listed in your credit report. As you are reviewing all three reports, often you will notice that they do not all contain identical information. So make sure that you are carefully reviewing each report and catching all of the mistakes and negative items.

Again, this may take a little time, just make sure that you are very thorough with your review. Once you have taken note of all negative items and mistakes you are ready for step 4.

Step 4 – Dispute Mistakes and Negative Items With Each Credit Agency

Once you have your master list for the dispute process you will need to contact each credit bureau for every mistake or negative item that the bureau shows for you. The law gives you the right to dispute any account information at any time. Once you dispute the entry then the credit bureau must verify that all of their information is correct and up to date. The credit bureaus have a reasonable time to verify that the information they have is correct, and this is normally considered thirty days, but it can be more or less than this number.

In some cases, due to computer or operator errors, a disputed item may disappear when it has been challenged. Often when you dispute an item then the creditor or credit bureau misses the deadline to confirm the information is, indeed, accurate, and in these cases the information must be removed from your credit report. The older an item is on your credit report the easier it is to see it disappear because of a dispute. You have the legal right to dispute any items on your credit report every thirty days, and if you do this step each month the odds of your disputed entry being deleted increases every time you dispute the item.

This is a very crucial step in the process of repairing your bad credit. You need to make sure that you are disputing all mistakes and negative items. These are going to kill your credit score so it is absolutely vital that you get them removed from your credit history.

Remember, persistence is key when trying to get items removed from your credit history. If you raise enough of a fuss about a particular item to a credit agency, they are more and more likely to just remove the item. Just stick with it and don’t stop until every mistake and negative item is removed.

If you found this guide helpful so far, I highly recommend that you get the full report sent to directly to your email. Typing out the entire 10-step process on this post would take dozens of pages, so I decided to just put it into a PDF file for you. That way you will have the document saved right there on your computer so you can reference it anytime you need it.

Simply fill out the form on the right and it will be e-mailed directly to your inbox!

I sincerely hope that if you are struggling with bad credit, you do something about it today. There’s nothing more embarrassing or depressing than trying to start a life with your significant other and finding out that you can’t even get a loan for a new house or car because your credit is so bad. Don’t let it get to that point. Step up now, admit you’ve made some mistakes with your finances, get it settled now, and live the life that you’ve always dreamed of!

Best of Luck

If you have ever applied for a credit card or loan and been denied, you may need credit score repair due to negative information on your credit report. Negative information may come from a number of different sources, and may be listed by a number of different types. Negative information in your credit report can have a drastic effect on your credit score, but this effect will vary depending on the specific information reported. A single late payment over a five year period may not even cause your credit score to lower, while a bankruptcy will devastate your credit score and report, and make it very unlikely you will get approval for any credit in the near future. Understanding the types of negative information that may appear on your credit report can help you repair your credit score.

Types of Negative Information That Can Affect Your Credit Score

Delinquent Accounts- Delinquent accounts can range in delinquency, and these can lower your credit score and make credit repair necessary. A delinquent account is one that is behind concerning payments, and the account may be delinquent by a few days or many months.

Late Payments- Late payments also affect your credit score and can be harmful, even if the account is not listed as delinquent, This is especially true if your payment is so late that you miss an entire billing cycle, and this will also usually cause your account to be reported as delinquent. It is a good idea to send the payment as soon as you receive the bill, because this prevents credit repair from becoming necessary due to late payments.

Charge Offs- A charge off can really hurt your credit score. This basically states that the creditor has given up trying to collect payment from you, marking you as a bad credit risk. This designation does not mean you no longer owe, or that the creditor will stop trying to collect, instead it is merely used for tax purposes.

Settlement Offers- Settlement offers may seem like a good deal, and a method for credit repair, but this is not actually the truth. Most of the time these settlements are listed negatively in your credit report, instead of as paid in full, and this can harm and lower your credit score. Frequently a settlement can cause you to need credit repair afterwards if it is not done in a specific way to prevent this problem.

Judgments- Judgments against you are a matter of public record, and these will significantly lower your credit score. A judgment means that a court has ordered you to pay a debt, and this makes you a poor credit risk. Judgments will be listed on your credit report for a minimum of seven years, and often longer.

Bankruptcies- Even the most effective credit repair methods may not help much when there is a bankruptcy listed in your credit report, and your credit score could plummet down two hundred points or even more in some cases.

Credit repair is a common goal for thousands of people every year in the United States, and you may be one of these people if your credit score is low, or you have been rejected for credit because of negative information in your credit report. There are steps that you can take to repair your credit score at no cost to you, and without any professional assistance. There is more than one reason why a good credit score is important, and getting this ideal number is not as hard as you may think, or as costly. Do it yourself credit repair can be done with some time and effort on your part, and you do not have to pay a large amount for the results that you want. Knowing how to repair your credit and increase your credit score can give you many benefits.

Credit Repair Steps

There are a number of steps that can be used for credit repair, and these are things that you can do on your own without any cost. These include:

- Check all three credit reports carefully at least once every year. This allows you to notice any errors before they can cause any problems with your credit score. Look for accounts which are not yours, and watch for any signs of identity theft or fraud.
- Dispute any information in your credit report that is not factual and up to date. This will prevent any mistakes that could lower your score, and cost you more in the long run.
- Audit any disputed amounts that are not resolved. This is a little known step that will force the creditor to prove the debt is yours, and that it is legitimate.
- After disputing or auditing an account, you have the right to receive a response within thirty days, after an investigation has been completed. Check your updated credit report to ensure that any changes are actually reflected in the reports.
- Send in a statement to be added for an account on your credit report. If you have disputed an item and it is not removed, you have the right to add a statement to the credit report that is visible for anyone who checks your credit reports and scores.

Why A Good Credit Score Is Critical

A good credit score is critical, and if your credit report needs repair this should be done as soon as possible. The number of your credit score will determine what interest rate you will pay, if you can get approval for credit in the first place. A score which is very low will cause you to get rejections every time you apply for a credit card, mortgage, loan, or other credit products. Having a high number, and credit reports that need no repair steps, means that you will get the credit, or even the job or rental unit, that you want and need. Your credit score does not have to stop you when you know the credit repair steps.

Credit repair is needed by a large number of Americans each year, for many different reasons, and this repair can involve a number of common mistakes which can make your credit score worse instead of improving it. Once you have determined that your credit score is lower than you want and need, you may decide to repair your credit. The first common mistake made is to hire a company or professional to perform the credit repair steps. These firms and individuals may charge hundreds, or even thousands, of dollars, but they do not do anything that you could not do for no charge at all. In fact, some of these services charge a monthly fee and then only do a minimal amount of work each month, disputing one or two items each time, to lengthen the time and increase their profits.

Patience Is Not A Virtue When It Comes To Credit Score Repair

Once you know that your credit score needs to be repaired, do not put this off. A common mistake is to wait before taking credit repair steps, in the hope that time will change your credit report, cause some accounts to fall off, and increase your credit score without any effort on your part. This is a mistake because it will take much longer for your credit score to increase. Instead you can take credit repair steps while letting time work for you at the same time. Pay down any existing debt while you are resolving any errors and disputing any mistakes on your credit report.

Credit Repair And Your Credit Cards

When it comes to credit repair, there are a number of common mistakes you should avoid concerning your credit cards and their accounts. One of the biggest is to apply for a number of new credit cards, in the belief that more available credit will help improve your credit score. Numerous applications may actually lower this number instead, and is not the right way to do credit repair. Paying down the current cards you have is a better method to use.

Another credit repair mistake is to cancel all of the older credit cards that you no longer use. You do not want a lot of unused cards on your credit report for a number of reasons, including extra fees and unnecessary time and effort to keep track of these accounts. You do not want to close out your oldest accounts in good standing though, because this can shorten the length of time for your credit history. A shorter credit history usually translates into a lower credit score. A better step is to close out unused credit card accounts except when they have the longest length and history on your credit report. These accounts should be kept open if your goal is to repair your credit score. Avoiding common credit repair mistakes is important, so that you reach the credit score you are aiming for. This will help you get your credit score in excellent condition a lot faster, so you reap the benefits.