Credit repair companies often charge hundreds of dollars to clean up your credit report. What they do not tell you is that most of them do things you could easily do on your own for free, according to the Federal Trade Commission (FTC). All consumers have certain rights under the Fair Credit Reporting Act (FCRA) that allow them to remove certain negative information from their credit reports with TransUnion, Equifax and Experian. These credit bureaus are bound by the FCRA to investigate most disputes and eliminate unverifiable items. You do not need to pay anyone to help you file your credit report challenges.
Step 1
Order free copies of your credit reports to find items that can potentially be challenged and removed. The FCRA entitles you to order one free report annually from each credit reporting agency. You must do it through the Annual Credit Report website, which gives you online, phone and mail options.
Step 2
Scour each credit report for questionable items and mistakes. The Credit Info Center website, a credit repair self-help website, explains that you can challenge even minor errors like misspellings, wrong dates and amounts and anything else you catch. The FCRA excuses the bureaus from investigating frivolous claims, but they must look into anything that has some basis.
Step 3
Compose a separate letter to each credit bureau, listing every item you are disputing and the reason. The letter should also state that you know your rights under the FCRA and expect a determination within 30 days and want any unverifiable items removed at the end of that time span.
Step 4
Look up the current postal address for each credit bureau. Mail your letters through certified mail. The FTC explains that this is the best way to protect your rights since you can ask for dated proof of delivery. Often, the credit bureaus will ask for verification and creditors will not bother to respond within the allotted 30 days. Under the FCRA, they have no choice but to remove those items, which can clean up your credit report significantly.
Step 5
Contact any bureau that does not respond to you with the allotted time and state that you want any items that have not been verified to be immediately removed from your credit report., which is required by the FCRA.
Step 6
Check each credit report again to make sure they have been cleaned up. You are allowed by the FCRA to get another free copy for this purpose. All the unverified entries should be gone. Contact the bureaus if any remain and ask for their immediate removal.
Tips and Warnings
- Deal directly with your creditors if the credit bureaus claim to have gotten verification on items you truly believe are wrong. You can request verification yourself and ask the credit bureau to stop reporting negative information that cannot be properly backed up with proof. It will then drop off your credit reports.
- The FTC states that credit repair companies victimize thousands of people every year by making false promises and refusing to refund the fee when it does not follow through. It recommends reporting such companies to the state's attorney general.
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