Credit Repair 101.
The Very First Step
If you have taken all the right steps, but have not been able to prevent your good credit from going bad, the experts emphasize that you must obtain a copy of your credit report. This is basic credit repair 101. All relevant personal and financial information about you is kept in a file by each of the credit bureaus.
Before you can repair or rebuild your credit, you need to know whether or not the items in your file are accurate. If they are accurate, there is nothing you can do to remove them--credit repair 101. However, errors, or mistaken information, can be eliminated by you. In fact, the Fair Credit Reporting Act (FCRA) lays out your rights, and the process the major credit bureaus must follow once you dispute an item in your credit file.
Next Steps in Credit Repair 101
Know your rights. The federal law, FCRA, explains your rights in relation to credit reporting. The Credit Repair Organization Act (CROA) regulates credit repair companies, and explains the laws they must follow. Read the Credit Repair Hub to find out your rights under the law, and to get ideas for handling your credit problems.
Credit repair 101 would include some basic approaches to credit rebuilding. Pay off your debts before asking for more credit, whether from a credit card company, or a bank. Obtain a secured credit card, charge a small amount, and pay it off in full. Doing this over and over is one factor in helping you re-establish a good credit history.
