Credit Repair Companies and the ECRA

How to repair your credit has been an issue of great controversy. Although there are many who promote self-help as the best solution the many credit repair services who come recommended by their clients would seem to suggest that getting outside help may be worthwhile.

Let us leave aside gossip, rumors, and even statistics about successful credit repair businesses. Let’s look only at reality. Self credit repair is entirely possible and in keeping with in the law. Even lacking experience you can still do so successfully.

But it cannot be done without effort and a great deal of investment in time. Although it can be done, lots of people still choose to hire a credit repair agency they would rather turn the work over to someone else, saving themselves time and effort.

If you want to know how to repair your credit, these five simple steps will show you how. When you have considered how to go about it, it will be easier for you to decide whether you would like to do it on your own or use an agency to do it for you. All right let’s go.

Step 1
Order your free credit reports. This is a necessity and will get you started on learning how to repair your credit, since in most instances your score is low due to erroneous entries that must be removed. Call 877-322-8228 or visit www.annualcreditreport.com

Step 2
Identify the errors in your report and get to work on getting them deleted. Here’s what you’ll be looking for – erroneous entries, closed accounts showing as open, accounts incorrectly reported as being turned over for collection, etc.

Step 3
Draw up dispute letters – one for each credit bureau. Although you may have many errors on your credit report (by no means an uncommon occurrence) be careful about disputing too many at the same time, or your letter will be ignored.

If you have documentation, you might want to attach copies. The better documented is the proof, the faster it will be removed.

Step 4
Add good things to your report that will improve your credit history. Get them reported and entered. See to it that the report shows all your timely payments. Obtain a secured credit card and improve the credit to debt ratio.

If you can pay some of your debts off, especially those credit cards that charge astronomical interest rates. Prioritize your payments so you pay off those debts first, as it will save you paying high interest.

Step 5
However, a good and viable option is to find a reputable professional company as they are experienced in how to repair your credit. This will make your task much easier; all you need to know as far as how to repair your credit, is what company to choose.

And lastly some tips; do not close credit cards account after paying them in full; the credit limit on those accounts will keep your “debt to limit ratio” lower, improving your credit score.

If you do decide to hire a credit repair company, beware of fraudulent companies; do your homework and find out about the company. It would behoove you to inquire with the Ethical Credit Repair Alliance (ECRA), the “watchdog of credit repair companies.”