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Credit Repair Tips

published  First Published: 20/01/2010
Article written by: Darryl Houston
Credit repair can be a long and tedious process for some people. In the beginning, it can seem overwhelming.
These simple tips from My Credit File Report's Nigel Brookson, can help you begin to repair your credit.
Most people only become aware that they have a problem when they go and apply for a loan, or credit card/store card, only to be told embarrasingly that they are declined, with often the reason given as "You don't meet our credit guidelines", which generally means that you have a default on your credit file.
If this happens immediately get a copy of your credit file, and do not apply for any further credit until you have dealt with the problem, you will only be doing your credit health more damage.
First and most importantly, document everything.
This includes keeping copies of; all bills and statements from your creditors, check books, bank statements, and all correspondence between you and your creditors.
It is crucial to keep an accurate paper trail of all interactions with your creditors. In the event of a dispute about payment history or payment agreements, your case will be stronger if you can provide documentation.
You will also be required to supply supporting documentation to a creditor on application, so having the documents filed away for easy recovery will speed up the process for yourself.
To begin repairing your credit, you'll need a copy of your credit report. My Credit File Report supplies people with a copy of their Credit File, their Credit Score, and a comprehensive Report on their Credit Health, with tips on what to do to repair any damage, and how to proceed with applying for any new credit they may like, or require.
Carefully read through the reports, looking for any errors that appear on your credit file.
Errors on credit reports are more common than you may think. If you find any errors, work on getting them corrected right away. You can phone, or write a letter to the creditor.
Include a copy of the report with the mistake highlighted. Ask for written confirmation from the creditor. Continue to follow-up until your report reflects accurate data. This may take a few months, but your persistence will pay off.
After your report is accurate, you can start working with your creditors. Contact each creditor and ask about establishing a repayment agreement. Most creditors will help you arrange to make payments you can afford, because they will be happy to receive something on a regular basis, as apposed to nothing.
Be sure to get all repayment agreements in writing. Be sure to make all payments on time! If you may have trouble making a payment, contact the creditor early and arrange an extension.
Your credit will only improve if you follow-through on paying your debts.
Now that you've arranged to resolve your existing debt, you can start establishing new credit history.
Many consumers start by opening a new line of credit with a low limit. By using the card and paying it off every month, you'll begin to establish a record of responsible behavior. Be careful to pay the balance in full every month; you don't want to get yourself deeper into debt.
After a few months, you'll begin to see the light of the tunnel. Just stick with it! You didn't get into debt overnight and will take time to get out of it.
By following these steps, you'll be well on your way to improving your credit.
You can get your credit file and report at My Credit File Report.
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