Free Credit Repair: Just Do It Yourself!

The Guide
Sample Letters
Take control of your credit and save thousands with a few postage stamps. Really...

So you may have a discrepancy or more on your credit report. So do 42 million others, as estimated by the Federal Trade Commission. You may not need credit now or in the near future, such as a credit card, mortgage loan, or a auto loan. So why would you need to fix problems on a credit report. I will tell you why:

One basic example is convincing enough: If you purchased a home for $200,000 on a 30 year mortgage, a lender will likely pull all three reports from the major bureaus: Experian, Equifax, and TransUnion. If you have bad marks on your report(s) your interest rate will be affected. Take a look at the below figures that are likely to be real-world figures for someone with good credit, and someone that's credit isn't perfect:

Monthly Mortgage Payment #1 (With a Positive Credit Report): $1,330.60 (@ 7% APR)
Monthly Mortgage Payment #2 (With a Negative Credit Report) $1,904.65 (@ 11% APR)

Are a few postage stamps and a little bit of your time worth a better credit record? Is that worth $574 per month (or $206,640 in accumulative extra payments) for 30 years? I can think of allot of better things to spend over $200,000 on.

With or without discrepancies on your credit record, good credit, or less than perfect - by reading this guide and taking appropriate measures, you can provide a better credit record and savings that may just last forever.

Let's Get Started... "The Reality of Credit and Credit Repair."

If Information Technology (IT) has spawned a "Big Brother", many would name the credit reporting industry as that entity. Nearly everyone with a social security number in America is tracked by Equifax, Experian and TransUnion. the three major credit bureaus. They compile files called credit reports which can either "make or break you" when you're applying for a mortgage, car loan, credit cards... and many times, insurance, as a tenant, for a security clearance, or a new job.

Credit reporting is a business, not a law or the result of legislation empowering creditors and lenders to check up on you as a prospective customer or borrower. However, over several decades it has evolved into a formidable information bank... the standard "go to" for credit granters or creditors... which can greatly impact your financial well-being and success. The Federal Trade Commission (FTC), through the Fair Credit Reporting Act, has been empowered to monitor and oversee the conduct and practices of the credit reporting industry. So to some extent, the FTC is the mediator between you, the consumer, and the three major credit bureaus.

Under the present law, the credit bureaus right to sell information about you without your permission comes with the responsibility to be able to verify or substantiate the information being reported - when it's disputed or challenged.

What many find unsettling is that virtually anyone who's determined enough to get your credit report can. A little more disturbing is the fact that credit reports are very often filled with mistakes and erroneous information. In fact, it's been estimated that around 70% of all credit reports are reporting inaccurate information.

So, even if you generally feel your credit report is good, it's in your best interest to periodically check your credit reports to see what's there and who's seeing it. If damaging information is being reported, you would of course, want to correct or clear it. And by Federal law, you have the right to do so.

You will find that removing negative information from your credit reports requires perseverance and a focus to follow through on the process of compelling the credit bureaus to document their information. This is, in fact, the very essence of what credit repair is all about.

For ease of use, this manual is divided into chronological steps necessary for repairing your credit. Stick to this plan, and you should see good results. If you're experiencing problems obtaining credit, regardless of what you think you know about your credit history, you'll need to start the process by obtaining your credit reports from all three major credit bureaus.

Next: How to use secured credit cards to build credit fast >>>


1. Obtain your three (Equifax, Experian, TransUnion), free credit reports at:
2. Identify the negative items and accounts being reported on all three of your credit reports.
3. Write and mail dispute letters to each bureau. Start with the "First Dispute of Account or Accounts".
You may receive confirmation correspondence from one or more of the credit bureaus stating they are investigating the disputed items (Experian almost always does this.) Ignore these confirmations and stick to the timetable. These may be stalling tactics.

4. Around 30 days, if the disputed items have not been removed or corrected, send the "Second Notice of Dispute Letter".
5. Around 45 days if the credit bureaus claim they have verified the negative accounts and have NOT deleted or corrected them, send the first letter of demand. If the credit bureaus have deleted or corrected some of the disputed items, but not all of them, send the second version of the letter of demand.

Make sure all of the needed information (See Step 1.) is also included in this second letter, and send this second letter via certified mail as well.
If after 30 days you have received no correspondence at all from any one of the credit bureaus, and to the best of your knowledge the credit bureau (s) are simply ignoring you, you have some flexibility here. You can either complain to the FTC and enclose photocopies of your letter(s) and certified mail receipt(s). Or you can wait another 15 days, and then send the credit bureau(s) this "Time's Up" letter, and a copy of it to the FTC... along with photocopies of your dispute letters and certified mail receipts.

Credit repair is not an exact science as individuals will have different credit issues to deal with, and may sustain unique responses from the credit bureaus. We are providing this resource as a free tool, and cannot guarantee credit repair based on individual situations. Use of this manual, like any resource at Finance Globe is subject to our website terms of use.