There is nothing a credit repair company can do for you that you cannot do for yourself. However, before you get started on DIY credit repair, take inventory of what you know and what you need to find out.
QUESTIONS
1) How long does it take to repair your credit?
A) 6 weeks
B) 6 months
C) It takes as long as it takes
2) How much time do you need to devote to your credit repair efforts?
A) 2 to 3 hours a month
B) 2 to 3 hours a week
C) It takes as long as it takes
3) How much can credit repair improve your credit score?
A) At least 50 points
B) More than 100 points
C) There are no guaranteed number of points your credit score will improve
4) What is the first step in the credit repair process?
A) Apply for a secured credit card
B) Get copies of your credit reports
C) Pay off old debts
5) What is debt validation?
A) When you verify with a debt collector that you owe a debt
B) When a debt collector provides proof that you owe a debt
C) The way debt is listed on your credit reports once it has been paid
6) What does it mean if your debt has reached the Statute of Limitations?
A) You are no longer legally required to pay the debt
B) The negative listing automatically falls off your credit reports
C) Both A and B
7) To whom do you submit credit report disputes?
A) Credit bureaus
B) Original creditors
C) Collection agencies
D) All of the above
8) How should you submit your credit report disputes?
A) Online
B) Snail mail
C) Fax
9) How can negative listings be removed from your credit reports?
A) Through the dispute process
B) Through the debt settlement process
C) Both A and B
10) What’s a good way to build positive credit?
A) Pay your bills on time, every time
B) Keep your credit utilization ratio under 30 percent
C) Return your credit cards to a zero balance every month
D) All of the above
ANSWERS
1) How long does it take to repair your credit?
C) It takes as long as it takes
The credit repair process cannot be rushed. For most of it, you’ll be waiting on responses from the credit bureaus, creditors, or collection agencies. But even when negative listings are removed from your reports, it still takes time to add positive credit history. It could be several months, or a year or more before you see a significant improvement in your credit score.
2) How much time do you need to devote to your credit repair efforts?
A) 2 to 3 hours a month
Here’s what your monthly credit repair schedule might look like.
3) How much can credit repair improve your credit score?
C) There are no guaranteed number of points your credit score will improve
The only guarantee is that you will see some improvement in your credit score at some point…provided you follow the credit repair process and maintain good credit practices going forward.
4) What is the first step in the credit repair process?
B) Get copies of your credit reports
You are entitled to free copies – from all three credit bureaus – every 12 months. To request yours, go to AnnualCreditReport.com. Then go through each credit report with a fine-tooth comb. Here’s what to look for. It is based on what you find in your credit reports that you will enter into the next step of the credit repair process – disputing listings with the credit bureaus.
As for paying off old debts, try debt validation first.
5) What is debt validation?
B) When a debt collector provides proof that you owe a debt
If a debt collector cannot prove that you owe a debt, then two things happen – you are not required to pay the debt and it must be removed from your credit reports. Debt validation is particularly effective for old credit card debt that the original creditor has sold to a debt buyer. The debt buyer may not have the documents necessary to prove you owe the debt. Make them prove it.
Learn more about debt validation.
6) What does it mean if your debt has reached the Statute of Limitations?
A) You are no longer legally required to pay the debt
However, the negative listing can still stay on your credit reports for up to 7 years, which means it will continue to negatively affect your credit. If you have a debt that’s close to the 7-year mark, you may want to wait for it to fall off. However, if it’s still a ways off, you may want to settle the debt (even though you are not legally required to pay it). Just be sure you’ve tried debt validation first. And if you do decide to settle, but sure to negotiate complete removal of the negative listing.
7) To whom do you submit credit report disputes?
D) All of the above
Start with the credit bureaus. If your first dispute with the bureaus doesn’t work, try another. Keep at it until you have exhausted every possibility with the credit bureaus. If this does not resolve the issue, then move on to the original credit or collection agency.
8) How should you submit your credit report disputes?
B) Snail mail
All of the credit bureaus have online dispute options. However, it is recommended that you send your dispute certified mail with return receipt requested.
Be sure to make copies of your dispute letter and make note of when you receive the return receipt. The credit bureaus have 30 to 45 days to respond after receiving your dispute. If they don’t, the listing in question must be removed from your reports.
Find the letter template you need to tweak and send your dispute.
9) How can negative listings be removed from your credit reports?
C) Both A and B
Negative listings can be removed from your reports through a successful dispute process. However, you can also negotiate the removal when you settle a debt.
10) What’s a good way to build positive credit?
D) All of the above
Pay your bills on time, every time. Keep your credit utilization ratio under 30 percent. And return your credit cards to a zero balance every month. If you’re having trouble getting a new line of credit to start rebuilding, try a secured credit card. Just be sure it’s one that reports to the credit bureaus.
How Did You Do?
7 to 10 answers correct
What are you waiting for? If you haven’t already, request your credit reports today at AnnualCreditReport.com.
4 to 6 answers correct
Give yourself a quick review of the DIY credit repair process.
up to only 3 answers correct
Check out this blog series that walks you through it every step of the way.
