Clear Your Credit

Getting a credit card is usually the first step for consumers to build their credit score. But sometimes it happens that cardholders fail to maintain their credit rating and they need credit repair. You may get an advice of the credit repair agency. Most cardholders are convinced that only the agency can help to rebuild credit score. In fact it's not true. Agency assistance really takes more time and money. Try to take the following steps before contacting the agency, as they may bring you surprising results.

The process of repairing of your credit rating after late payment, credit overdraft, bankruptcy definitely takes a great deal of time and patience. First of all, you should contact the credit bureau and make a request for your credit report.

According to Federal Law, you are entitled to get a free credit report every year. There are three major credit reporting bureaus, that you should contact - Experian, Equifax, and TransUnion. Look through the Yellow Pages or run a web search for the info on credit bureaus. Collect the following documents when you contact the credit reporting bureau:

• Request for a copy of your annual credit report.
• A copy of your state ID.
• The proof of your current address if it is not on your ID.
• Last address for the past 5 years.
• A copy of your Social Security Card.
• Your signature.

Wait for 4-6 weeks to receive your credit report. If you have already got your annual credit report and are not eligible for the one anymore, you may use any of the last low APR credit card denial letters within the 60 days of the receipt. Make the copy of this letter and enclose it with the request for the copy of your credit report.

When you get your reports from all the bureaus, check them all for accuracy and mistakes. Do not hesitate to dispute your report. Your credit reports must include contact and account data for each creditor.

Most of the debts that are older than 7 years will not appear on your credit report.

Contact each credit card issuer to arrange a payment plan with them. Most of them are willing to work with you and to meet you halfway. If the creditor is being difficult, ask the supervisor to speak with someone else. Offer your solution and settlement amount.

It may take for up to 6 months that there is some progress in your situation, but expect the headway in your credit report only within a year.

Remember that it's important to keep all your receipts when you pay your creditors. Always include a self address stamped envelope with your payment and request a receipt from the credit issuer.

Get annual reports from all the three bureaus. And don't apply for another credit until you get out of your credit debt. Stay focused on your goal and you will succeed.