Credit Repair: Tips for Repairing Your Credit Report

Having a credit score that is less than perfect is quite common these days. A single late or missed payment can drop your credit score by up to 100 points! There are techniques to bad credit report repair that you can learn to fix your bad credit. While it's easy to see it slip, it is just as simple to raise it up - if you follow the advice given here.

Tip 1: You need to pay down your credit card balances.

The algorithm that dictates your credit score weighs the difference between your available credit and your credit in use very heavily. If you have credit cards that are maxed or near maxed, then you need to do more than pay the interest on them each month. Make some sacrifices and start reducing the principal amount on them. The most that you should have on any one card at any time is bout 30% of the maximum limit allowed. When you have credit that is available to you that you are not using, it makes you look like you practice restraint and shows responsibility. Credit score algorithms like that.

Tip 2: Break out some of those older credit cards and use them.

The longer that a credit account is in good shape for, the better it weighs on your credit score. If you have older credit cards that are still valid, but you haven't used them in a while, use them. Charge up to 30% of the maximum limit and then pay it off promptly and in full. This way, these actions get reported to your credit bureaus and make you look like a well-established credit champion!

Tip 3: Dispute negative items on your credit report.

You are entitled to a free copy of your credit report from each of the three major credit reporting agencies once every year. They are: Experian, TransUnion, and Equifax. So, once every four months, request a copy from one of them. This way, you are always in the know about your credit situation.

Go through them each time you get one and dispute every the negative items on them. It is your legal right to dispute any negative claim against you. By disputing an item, you are exercising your right to have the claim verified. This is the responsibility of the credit reporting agency since they are the organization selling your information for profit. It is their responsibility to verify the information that they are selling.

They must verify each claim disputed in a reasonable time frame of 30 to 45 days or they have to strike it from your report. Now, about 40% of these disputed claims do not get verified in time. This is the single most powerful method of bad credit report repair. Use it to your advantage and use it often. Make sure to submit your dispute forms via certified mail at the busiest business times of the year.

These are just a few of the ways that you can engage in bad credit report repair. All it takes is attention, diligence and then some patience. Bad credit report repair is your legal right and something that you should do regularly!

Learn more about repairing Your credit report at AAACreditGuide.com. Check out the best credit repair companies at Top-10-Credit-Repair.com.