Some repair clinics may even get you into legal trouble by encouraging you to distort the information in your credit file, or by helping you to initiate a new file with a new address and federal identification number.
Here are five steps to credit repair:

1. Lock your cards away.
Don’t close your accounts yet. If your credit rating has been damaged, you may have trouble getting new cards. But stop using them. Your immediate goal is to repair your credit rating and to get out of debt.

2. Figure out where you stand.
No one likes to focus on budgets and net worth statements. It’s particularly painful if you suspect your income is less than your debt and that your net worth is in minus territory. Still, finding out the truth is a necessary first step, just like stepping on the scale before you begin to diet. It helps you measure your success.

You have a great deal of control over your budget and net worth. But much of your credit record is actually controlled by others — your creditors and the reporting bureaus. Between 30% and 40% of these reports contain errors, Ventura says. Clear those up first.

Ventura suggests that you write to the credit bureau detailing the errors in your report and that you send your correspondence by certified mail with a return receipt requested as you work to clean up your credit report. That will provide you with a paper trail and help you remember when to follow up.

Be as succinct as possible. Don’t be angry or accusatory. Provide back up materials whenever you can. For instance, if you’ve paid off a bill and received a letter from the former creditor acknowledging that the debt is paid, send along a copy.

In your letter, identify problems such as:

"The credit file your company maintains on me states that my account at Macy’s is overdue. In fact, I have closed my account at Macy’s and paid off the balance. I am enclosing a letter from Macy’s to support that."

Tell the bureau that you want to have the problem investigated as soon as possible. Ask to have a corrected report sent to anyone who has asked for the report during the past six months for credit purposes and during the past two years for employment purposes.

3. Devise a plan.
If you’re going to clear up your credit rating, you must begin paying your bills on time. That means you pay at least the minimum balance on each bill within 30 days. Determine whether you can do that. If you aren’t even close, consider credit counseling. If it’s hopeless, you may want to consider bankruptcy and a fresh start. Determine which course of action you will take and stick to your guns.

4. Negotiate with creditors.
Nine out of 10 creditors will renegotiate terms with you if you’re having trouble paying bills. Good candidates are gasoline companies, utility companies, hospitals and doctors. Gasoline cards are usually not reported to credit bureaus until you’re 90 days late, and the others don’t generally show up on credit reports unless the bills are sent to a collection agency. Write a letter to these creditors describing your problem and requesting a reduced payment schedule. Then stick to your new schedule.

5. Add pertinent information to your credit file.
Your credit report may be damaged as much by the information that is omitted as by the negative information that is found there. Creditors are not required to report information to a credit bureau. But you are entitled to add information that you feel will help your rating.

The law says you are allowed to write a letter of up to 100 words involving any credit dispute and that the agency must provide to any creditors who ask for information. That might include the details of loans that you paid on schedule, active accounts where you have a good record, salary increases at your job, and information about your mortgage, car loan or the settlements of disputed bills.

Ventura suggests that you write to the bureau, enclosing a copy of your credit report and the information that you would like added to the report. Also include information, such as account numbers, that will allow the credit bureau to verify it.

Negative information can be maintained on your report for seven years; bankruptcies for 10 years. But many creditors weigh new information more heavily.

"How much you pay is not as important as how often you pay," Detweiler says. "It’s important to establish a record of paying bills on time and to stick with it."
:–#)

My boyfriend and I introduced our First Time Credit for Homebuyers and received a letter back from the IRS requests for additional documents, I found one of them but it's hard to find the other two. I know I have all my papers to buy our house, but I have trouble figuring out which ones the IRS wants. I still need to document certifying the land transfer tax paid or "tax stamps and an original letter from a governmental entity (City, State, city) raised on an official permit. Would we normally received something of a governmental entity when we bought our house? All Help will be great! Thank you!

the item you need is a document called the HUD settlement. It's two pieces of paper that shows where the money went and stamps are on this form. You also need this form for your tax returns, so save a copy

Tax Credit for First Time Home Buyers – Down Payment Assistance – RealEstateMarketingThisWeek.com

If you get a credit card, then yes, pay it off each month and you’ll start to build credit, but don’t close it. Credit is all about ratios. If you have an account and carry a balance of 25% of your available credit but make your payment each month, that can actually be a good thing.

Before you do anything though, get copies of your report from the 3 credit bureaus. This is free if you find the right web site. Then, use the info in it to plan your strategy. If you have bad credit…not just no credit…then you should contest the bad marks. Do this even if they are accurate. A lot of times the companies won’t fight you and the bad marks will just go away! Whalaaaaaa.

Oh…besides credit cards, bank loans and student loans build credit. So if you buy a car, that’s a start.

Print out the reports from the 3 credit bureaus.
Either the address or telephone number will show up.
Get a good book from your library or bookstore on:
Credit Repair – bookstores have many.
They will teach you step by step how to deal with them.
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The same goes for collection accounts, simply paying them will not make them go away, the damage has already been done. They will be reported for 7 1/2 years, even if paid they will still say "paid collection" which is still only slightly better.

If the debts are still with the original creditors, then call them up and try to make a affordable payment arrangement with them, and stick with it. It is so much better to pay than to have charge-offs.

If the debts are with collection agencies, then the only way to improve your credit is to negotiate a "pay for deletion" with them, this agreement is in exchange for payment the collection agency agrees to completely remove the account from your credit report. They will not want to do this, but they can. You do have something they want, money.

If they agree then get the agreement in writing BEFORE mailing them payment. Pay by money order, never let them have access to your bank account.

I do all my bill online, but I was not paying attention and provided a payment credit card when the date was (ie 25th). I thought everything was fine and dandy but when the date is past, money was not transferred until a day later. I called the bank and they explained the delivery, etc and removed the late fees to my account. The person on the phone said he would not be on my credit … and should normally begin to affect my credit score if I was not right and the final charge amount within 30 days. As much as I want to believe them, I still have my doubts. What do you think? Currently, the debt I have student loans and car payments (Which should be done with them in 2 years). Always keep a balance on my card 0 credit. Ms.toni @ Thank you, exactly what I wanted to know. Would you select that the best response once the option is in place.

While it was not 30 days or more will not affect your credit rating. The creditors do not report the end of 1-29 days.

Credit Repair – Credit Score,COLLECTION,Bunkruptcy,Forclosur

Understand What Lenders Are Looking For
Since you are looking to establish credit for the first time, lenders can’t look to your FICO score to determine whether or not to lend you money. In these situations they have to examine other factors that can help them decide if you are a credit risk or not.

Bank accounts. You don’t need a credit score in order to open a checking account at your local branch. Since it doesn’t require credit to open, it also doesn’t get reported to the credit bureaus to establish any credit. Even so, your account history can be a vital component when lenders consider giving you a credit card or loan for the first time.

Employment history. Another important factor lenders look at is your employment history. They want to see if you are able to hold a job or if there are periods of unemployment. Your ability to hold a steady job can improve the likelihood of getting approved.

Residence history. Lenders will also look to see how often you move and whether you rent or own. As with employment history, it pays to have a stable residence. Owning a home, even if just jointly with a spouse, carries some weight as well.

Utilities in your name. Even without a credit history, it is possible to sign up for many utilities in your own name. Having an electric or gas bill, telephone, cable, or water service in your name also helps. Just having your name on these accounts won’t establish a credit score, but it can be helpful for first-time borrowers.
Start With Your Bank
There are a few things you can do that can help in your quest for establishing credit. The first thing you should do is open and maintain a checking and possibly even a savings account at a local bank. This is helpful in two ways:

When you have active bank accounts in good standing, you are proving that you can manage money. While bank accounts aren’t typically a part of your credit score, lenders can use this information to determine whether or not you are a credit risk.

Establishing a relationship with a bank will improve your chances in obtaining a loan or credit card through them. If you already do business with a bank, they should be the first place to look. They know you and they value your business. This existing relationship should carry some weight when seeking credit.
Consider a Department Store Card
You’ve probably been shopping at the mall and been asked if you’d like to sign up for their store credit card to save 10% on your purchase, but politely declined. Generally, store cards are a bad idea because they lure you in with that up-front discount, and then the ongoing interest rate is very high.

Avoiding these cards is typically a good idea, but the ease in obtaining one may actually be a good thing if you’re having trouble establishing credit. If you have struck out at the local bank, you may want to consider checking with one of the local department stores and see what type of cards they offer. Whatever you do, make sure you find out whether or not they report to the credit bureaus. If they don’t, it will do you no good.

If you are approved for their card, you need to be disciplined and use it properly. Don’t treat this new purchasing tool as free money, but only as a means to establish good credit. The limit will probably be low anyway, but you should make an initial purchase with it and subsequently pay the balance off in full. Once the card is active, it should begin to be reported to the credit bureaus. It is now important to maintain a good payment history on this card so your credit history can build upon it.

When All Else Fails
If you’ve tried the bank, department store, or even credit card companies directly and failed, not all is lost. Secured credit is a last resort, but it is much easier to obtain than unsecured credit.

When a credit card or loan is secured, it means that there is an asset linked to the account that the lender can take if you fail to make payments. When you have a mortgage or auto loan, these are secured loans. If you fail to make payments, the lender will take your house or car in order to satisfy the debt.

You can establish the same thing at most banks with a secured credit card. You can pledge money you deposit in an account to secure the credit card. For example, you could obtain a secured credit card with a $500 limit if you put a $500 deposit in the bank that is linked to the card. If you fail to make your credit card payments, the bank takes your deposit.

Again, you want to check and be sure that this secured credit is reported to the credit bureaus, but if so, this can be a useful tool to establish that first piece of credit history. After you maintain that account in good standing for a while, you may be able to obtain a regular credit card or loan.

Establishing Credit is Only the First Step
Establishing a good credit history takes time. There are no shortcuts or tricks that can take you from no credit at all to a high score in a matter of months or even a few years. Your credit score is based on a number of factors such as payment history, length of time you’ve had credit, and much more. So, while it is important to initially establish credit, it is even more important to take the time to do the right things to maintain good credit.

I check my FICO scores (when you order your FICO scores it comes with a complete credit history) every six months. Always order your FICO from the company.