Repair Your Own Credit – Remove Negative Items & Hard Inquiries

For today’s topic, we’re going to discuss “self credit repair”. Some of you may be hesitant with having someone else repair your credit. You want it done, but you would rather do it yourself. This will help you save money. I’m going to give you a few tips and tricks. I’m not going to give you the whole enchilada. Here are a few tips on how you can repair your own credit.

First, you want to repair your credit so you can get the financing you need. If you’re a real estate, like me for example, I’m a real estate investor and having great credit (for my personal use), was very important. There are various qualifications for credit, for financing and business credit, with a personal guarantee. It’s important for your personal use as well, if you want to buy your first home, so repairing your credit is very important.

Here are some things which can harm your credit.

  • collections
  • charge-offs
  • eviction
  • judgements
  • tax leins
  • bankruptcies
  • foreclosures
  • unpaid medical bills
  • lots of debt
  • inquiries on your credit report

All of the items above can be removed. That’s what I will show you how to do. You can get all this stuff removed at low cost if you do it yourself. You’re just going to make sure you follow the instructions. Let’s get started.

Opt-Out Promotions

How to repair your own credit — the first thing you should do is opt-out promotions. People don’t know this, but the credit bureaus may sell your information. They sell it — what you want to do is prevent them from doing so by opting out. There’s certain websites that you go to that will show you exactly where to go. It’s so easy, a baby can do it. You want to opt out of them selling your information. This is important because it makes it harder for them to verify accounts on your credit report, when it comes to diputing items. That is the first step you will want to take.

Order Your Credit Report

The next thing you want to do is order your credit report. Without the report, you don’t know what to dispute. You need the report so you can pinpoint what items you need to dispute. Some of you may already know that if you have a bankruptcy or collection account, you already know this — but it is good to see what information is reporting negatively on your credit report. It plays a major role in repairing your credit. Simply go to annualcreditreport.com, they give you a free annual credit report that you can order online. I highly recommend them, because they give you all three credit bureus and it allows you to run the report without incurring a hard inquiry (remember, simply inquiring what your credit is will usually be bad for your credit — if there are many requests).

As mentioned, if you use that website to order your report, you will receive one from all the main credit bureaus (Experian, TransUnion and Equifax). Of course, you can order the reports directly from their respective main websites, but it is faster and more convenient to receive them all at once from annualcreditreport.com.

The Three Credit Bureaus

Here is a very important point, I can’t stress it enough. The credit bureaus deal with millions of files daily. Do you really think the credit bureaus have enough time, let alone man and power, to actually investigate every consumers file that disputes an item on their credit report? They don’t. Remember, the credit bureaus don’t even keep any documents. They don’t keep any original contracts between the consumer and the creditor. They don’t keep any proof in their system that they can use to verify your accounts. How can they verify your accounts then? The answer is through your personal information. That’s why it’s very important that you need to remove all of the old addresses you have on your credit report. Remove name variations that could be incorrect. Remove inaccurate phone numbers off your credit report. You can give a list of all these things you need to remove to update your personal information.

Just because you update your personal information it doesn’t mean that all of your derogatory or negative accounts that you dispute will just fall off. However, it will make the credit bureaus job hell. It will make their job a whole of a lot harder, and that’s the point. Some of those items will naturally fall off. I have one client, he has some variations in his name. He disputed that — that is sometimes where items start falling off your credit report. It is as simple as that. You need to update your personal information because that’s how they keep track of all that stuff. The credit bureaus will have all your information on file.

Dispute Original Contracts

If you have original contracts on file, dispute it. Next step is send out your first round of dispute letters. Obviously, we have to spew letters out of website. Find some form letter online. Search for “sample dispute letter to creditor”. It’s very easy, you can just edit it. You will do this for all the original contracts on your credit report. Print that off, fill it in and mail it. Just to kind of broaden your awareness of why the dispute letters being used, they are required to delete all information that cannot be verified. In short, if the credit bureaus collection agencies or creditor cannot prove the account or inquiry in a timely matter which is about 30 to 45 days business days, the account must be removed of your credit report. “Proof” means physical documents with your signature.

Federal case law also states that the consumer reporting agencies have very grave responsibilities to ensure the accuracy of the accounts they report on. It is their responsibility to prove it is real. They cannot just say it — they must show proof. Consultation consumer reporting agencies like TransUnion, Experian, and Equifax, they bear great responsibilities to ensure the accuracy of the accounts they report on. The responsibility must consist of something, so that’s that’s very important. They must show you proof, so this works great with collection accounts, because they don’t keep your documents on file unless the collection agencies are in-house (like medical bills). That’s there is a separate dispute letter for medical bills.

At Kiwi Cash, we understand it can be a difficult getting ahead when you’re in debt. Our guest blog posts provide many great solutions that can help you financially in the long term. They focus on making money, saving money, investment and credit repair. Continue reading for financial tips and tricks that will help you quickly repay your no broker loan.

Don’t Include Identification in Round One

Many collection agencies don’t have your documents on file. It’s very easy to dispute them. With your first letter, don’t include or attach any forms of identification. You don’t want your state ID or your driver’s license or utility bill (things like) included. You should send it certified mail, then after that’s done you go to the next step.

Second Round of Letters

Within a 30 to 45 days, you will send out your second and third rounds of letters. We have a different method for removing public information like this at a courthouse (like a bankruptcy tax lien), things like that. Judgments and medical bills, like I mentioned before on medical bills, most of the time they have a collection agency in house. They do have your actual records signatures on file. Removing the inquiries from TransUnion and Experian (which is very easy). It normally takes a maximum of 90 days, or maybe a little longer if you had other people working on your report.

In my personal experience, to remove TransUnion, it was about seven business days. For Experian, was about four business days. Don’t quote me on that, it could be different. Don’t quote me on my personal results I’m sharing with you. Equifax can take a little longer. This is a different process. Remove inquiries from TransUnion and Experian, it’s a lot easier because you’re dealing with the credit bureaus. With Equifax, you’re going directly with the creditor.

As you send out the second and third batches of letters, it is a good idea to include photocopies forms of identification. Your Social Security card for this one. A notarized letter for this one. You need your driver’s license for this letter. This is an overview, designed to give you hope that your credit can actually be restored. Every step I mentioned, you should research further.

As a real estate investor, online entrepreneur, and published author, Juan Pablo has dedicated himself to giving back through means of sharing his knowledge and experience. JP believes that creating value and happiness for others is an investment that provides invaluable returns.