Whenever you do anything detrimental to your credit history, such as default on a loan or credit card or have late payments, a negative entry will be reported on your credit history. When a consumer removes negative entries from his credit report, “credit repair” has taken place.

There are many significant ways in which these negative entries can affect you. These negative entries will make it harder to be approved for any credit products, such as home loans and credit cards. You can be assured that the financial products for which you are approved will include a high annual percentage rate (APR) and associated monthly and annual fees and charges.

Don’t throw your arms up in despair! There is good news! There are many online companies which, for a fee, offer credit repair services. Alternately, you can attempt to repair your credit yourself if you would prefer not to pay for credit repair.

Obtaining a copy of your credit report is the first step toward credit repair. This is easily accomplished by contacting the three major credit reporting agencies – Equifax, Experian, and TransUnion – and requesting a copy. Each of these credit reporting bureaus is required by law to provide you with a free copy of your credit report every twelve months. If you would prefer, you can call (877) 322-8228 and request a copy of your credit history. As a final alternative, you can contact one of the many online companies which provide this service.

Once you receive your credit report, you should take a few moments to review the information contained on the credit report for any inaccurate or false information. This review should include ALL information on the credit report, not just the financial information. Be sure that your full legal name is shown and that your date of birth, past addresses, and your employment information is accurate.

If erroneous entries are discovered on your credit report, you should sit down and compose a letter to the credit reporting agency explaining the reason for your letter. You will want to include a copy of any supporting documentation when you mail your letter. It is important that you retain copies of any and all correspondence and documentation to and from the credit reporting bureau.

The credit bureau has 30 days to verify the credit report entry which is in dispute. If the credit bureau cannot obtain verification within 30 days, it must remove the entry from your credit history. The credit bureau will respond back to you with any actions it has taken with regard to your credit report entries. If the credit reporting agency decides not to revise or remove an item you feel needs to be revised or removed, you should contact the credit reporting agency and request that they let you know how and why they arrived at this decision. This is called requesting a “method of verification.”

Though this process can be time-consuming, it is beneficial in order to remove all negative entries from your credit report. This will help to increase your credit score which will help to increase your chances of qualifying for better financial products.

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