Do It Yourself Credit Repair

What is credit repair? Repair means to fix something that is broken. Broken credit means you have more debts than you can handle. To repair your credit you need to find a way to deal with your debts.

On this web site we discuss the ways you can have professionals help you repair your credit and deal with your debts, including credit counseling, Chapter 13 Wage Earner Plans, consumer proposals, and, if all else fails, personal bankruptcy. But is it possible to repair your credit on your own?

Yes, it is, and here's how you do it.

How to Repair your Credit Yourself

First, determine how much credit repair is necessary. The best way to do that is get a copy of your credit report from one of the large credit bureaus such as Equifax or Trans Union. If the only negative item on your credit report is an old $100 phone bill, pay the phone bill. If the amounts are higher, more effort will be required.

Determine which amounts on your credit report can be paid off in a reasonable amount of time. Then, with your personal budget as your guide, make payment arrangements with each creditor. For example, if you can afford to repay $500 per month to all of your creditors, don't offer the first creditor $500 per month. Offer, say, $150 per month, so you have additional money to make deals with the other creditors.

A debt consolidation loan is another great way to repair your credit. If you can borrow to repay your old debts, your credit will look much better.

Of course when you have debts it is often difficult to qualify for a debt consolidation loan. You may need a family member or friend to act as a co-signer until you are back on your fee.

Other options include selling assets to raise the cash to repay your debts. If you have an old car, perhaps you could sell the car and use the money to repay your debts.

The starting point is to determine what you owe, and then make a plan to repair your credit.