Beware of credit score quick fixes.

During challenging times like now, it can feel very frustrating when your debts have gone to collection due to job loss, or even the company you are working for files for bankruptcy. What ever your situation is there is no quick resolution to repairing your credit report. Lots of credit repair companies will sell you on quick fixes, but depending on how bad your credit report is littered with collections and how much money you have to work with, will determine how long the process will take. Don’t get trapped into quick credit repair schemes. There is no such thing. I assure you of that. I wanted to discuss the process in this article about how to repair you credit and the FACTS about the process.

Here are the proper steps………..

Step 1: Credit Education
The first step is to be aware of what will destroy your credit while you are trying to repair your credit. Collections and late payments are the ultimate death of good credit scores. If you are in the process of trying to figure out how to fix your credit, that would be a good start. Make sure you don’t have any late payments ever, and definitely make sure nothing goes to collection. It does no good to work on your credit if you continue to have obligations go to collections and / or late payments on stuff. This is the first step before you start any type of credit repair.

Step 2: Pull your credit report
Don’t be scared; pull a recent copy of your credit report to determine what you need to work on. Pulling your own credit report does not hurt your credit scores.

Step 3: Review your credit report
Determine what is accurate and inaccurate. If you find stuff on your credit report that is not yours, dispute it with’s on-line dispute process. These are links that take you to each credit bureau so you can dispute inaccurate information.

Step 4: Negotiate collection accounts
After you have determined what collection accounts you have acquired, you will need to figure out what your budget is to pay off these collections. Most collection companies will take pennies on the dollar for debts owed. Phone numbers for these creditors will be on your credit report somewhere. You will need to look for the collection company’s number. The number is usually on towards the back of your report.
For example: If your credit report says you owed $300.00 to so and so collection company, you will offer them $150.00 dollars to settle. You may offer less, depending on what your budget is. You need to start with the most recent collections and the smallest collections on your report. Once you come to a agreement with a collection company whether its payment arrangements or settlement, make sure you follow through on the agreement.

Step 5: Get letters from Collection Company of agreement terms
Once you have paid a collection, the collection company is suppose to mail you a letter stating what you did, and report that to the credit bureaus. Make sure you get these letters from these collection companies. Put those letters in your file cabinet and remember where they are. You may need them if the credit bureaus don’t update properly. That is your proof to cover yourself.

Step 6: Re-Establish your credit
In order for your credit report to score you, your credit report needs credit reporting on that report. If all your obligations went to collection, you will need to re-establish credit. The quickest way to establish credit is to apply for a secured credit card. These types of cards usually require a deposit from you in the amount of $200.00 to $300.00 in an account of the banks choice. The terms and fees are usually not good, but it is what it will take to re-establish your credit. Make sure you are not late on any payments, and pay off the card as soon as possible, even though it was your money that secured the card. Ideally you need a couple of these cards, so get two. While you have this card, charge small purchases on these cards, and pay it in full every month. With good payment history these credit card companies will extend credit to you over time. You will need at least 3 lines of credit on your credit report. Get a couple of secured credit cards, and if you don’t have a third, apply for a small personal loan that reports to all 3 credit bureaus.

Step 7: Re-check your credit report
After you have paid off collections and/ or re-established your credit, pull a copy of your credit report to see the progress. This is not a quick process and can take up to a year or so. The timeline depends on how much negative information is on your credit report. Don’t get frustrated, this process that I have discussed will work. Eventually your credit report and credit scores will progress depending on how quick you pay off your obligations and re-establish new credit. If you see inaccuracies on your credit report, especially for those obligations you have paid, use our “Fix credit report errors” article.

Good luck. your resource for free credit reports, credit cards, loans, and ground breaking credit news.

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.