What does Credit Restoration entail?

When unforeseen circumstances in life take place it can often affect your credit. Unfortunately, there is nothing that is going to magically wipe the slate completely clean, but credit restoration could offer some help to those who are struggling.

The Credit Restoration Process

1. Review Your Credit Report

The first step in the credit restoration process is to obtain copies of your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. You are entitled to one free credit report from each bureau annually through AnnualCreditReport.com. Carefully review each report to identify any inaccuracies or negative items that may be affecting your credit score.

2. Dispute Inaccurate Information

If you find any errors or inaccuracies on your credit report, you have the right to dispute them with the credit bureaus. This can typically be done online, by mail, or over the phone. Provide any supporting documentation that proves the information is incorrect, such as payment records or correspondence with creditors. The credit bureaus are required to investigate your dispute and remove any inaccurate information within a reasonable timeframe.

3. Address Negative Items

In addition to disputing inaccurate information, it's important to address any legitimate negative items on your credit report. This may involve negotiating with creditors to settle outstanding debts, setting up payment plans, or exploring options for debt consolidation or debt settlement. Taking proactive steps to resolve past financial issues can help improve your credit score over time.

4. Build Positive Credit History

While working to remove negative items from your credit report, focus on building positive credit history by making timely payments on existing accounts, keeping credit card balances low, and avoiding new credit inquiries. Consistent, responsible credit behavior is key to improving and maintaining a good credit score.

5. Monitor Your Credit Score

Once you've initiated the credit restoration process, it's important to regularly monitor your credit score and credit reports to track your progress. Many credit card issuers and financial institutions offer free credit monitoring services that provide access to your credit score and alerts for any changes to your credit report. Stay vigilant and continue to advocate for accurate, fair reporting of your credit history.