by Trina L. Grant

Created on: October 09, 2009   Last Updated: October 28, 2009

Restoring a good credit rating is more than just regaining the buying power for the trappings of modern life. It is the process of restoring your name and reputation. Bad credit not only affects consumer capabilities, but can affect employment and housing prospects as well. There are many methods for personally repairing your credit report.

ORGANIZE

Meticulous record-keeping and organization are integral components of stable finances. Design a filing system that makes all necessities and documentation ready at hand. Try different filing systems until you find one that works for you. Keep all paperwork and document any communication with creditors.

ORDER CREDIT REPORT

Federal law entitles every citizen to one free credit report per year. More information is available from the Federal Trade Commission website on the policies regarding free annual credit reports. There is a link to AnnualCreditReport.com, a site sponsored by the three major credit bureaus, Experian, TransUnion & Equifax. AnnualCreditReport.com gives people a free credit report every year, with no obligation to buy a membership to a service or purchase a product.

ENROLL IN A CREDIT MONITORING SERVICE

Use a service that provides a monthly report from all three major credit bureaus. Safeguard your identity and reputation from even further damage. Research any company before you get involved. Be wary of companies that request any identifying information, especially your Social Security number.

SCAN YOUR REPORT

Scan your report thoroughly. Ensure accuracy of personal information. Scour the report for financial accuracy as well. Every report has a different format, depending on the reporting policy of each bureau. There will likely be varying balances listed for each debt, as well as different states of repayment. The validity of this information depends on the policies of the bureau and the precision of the data entry clerk who put the information into the database.

DISPUTE INACCURACIES

Successfully disputing debt information will be difficult without documentation. It is easier to have erroneous personal information removed or changed than financial errors, simply because it is easier to remove a misspelled street name than track down debt information. For example, if the credit report lists your last-known address as 712 Pine Valley Circle, and you actually lived at 712 Pine Valley Drive, you can dispute the inaccuracy.

CONTACT DEBTORS

Contact your debtors, set up payment plans and adhere to

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