Your credit history is what you will be judged by for your entire adult life. It is this history that will determine whether or not you get a loan for a new home, whether or not you will get financing for a new car, and whether or not you can rent an apartment. It will also determine whether or not you will be approved for future lines of credit, whether they are from a credit card or a doctor's office. Again this history determines whether or not you will have to pay a deposit when you get a new cell phone and it is even what will determine whether or not the utility companies will let you install services. Sometimes your history will be the deciding factor in whether or not you are hired for a job. You've been told this since the day you signed up for your first credit card and in spite of this; you now need to know how to repair your history.
Perhaps you have discovered errors on your credit report or you've gotten a bill for a credit card you don't remember signing up for. Or, maybe, you had a financially irresponsible youth. Debt accumulates for many reasons and there is no reason to be ashamed of it-or the fact that you need to repair your history. Most people do. Credit reporting agencies are not accurate, and most people have found mistakes in their reports.
The first step if you want to repair your credit history is to get a copy of your current credit – report and notify the credit reporting agencies of any mistakes you find. You will want to check your report every three months until you completely repair your history and even then, you will still want to check it at least once or twice a year.
Next you will want to validate your debt. Ask all of the companies claiming that you owe them money to send you proof of your debt with them. This request must be done in writing and the companies have thirty days to reply. If the companies fail to reply or to supply you with sufficient proof of your debt, they are required by law to delete you from their system and the credit reporting agencies are required to delete the account from your history.
Once you know, for sure, how much you owe; you must begin to pay it off. Pay off the smaller bills and make payments on the rest. Make sure to make all of your monthly payments on time or even early. Most companies are more than happy to work with you when they know that you are serious about paying off your debt.
In fact, the best way to repair credit history is to slowly replace the dubiousness with steadfastness and responsibility. You can do this by not missing a single payment from now on. Tip # 1
Stay on top of your credit report. Most reports contain errors. Make sure you check your report every year (you get one free report every twelve months) and if there are errors make sure to challenge them with the reporting credit agency. They are required to investigate each and every challenge that gets reported.