How to Rebuild Your Credit for Free

Is it possible to rebuild your own credit? If you have a poor credit score or bad credit history, what can you do to repair it? The good news is that there are steps you can take by yourself to improve your credit score. However, it’s important to remember that repairing bad credit takes time. Complete credit rehabilitation cannot be done overnight.

The length of time it will take to repair bad credit depends on the situation. Needless to say, if you currently have a credit score way below average, you might need a little more time to work for improvement. It can take anywhere from six months to a year or a few years to achieve an excellent status, depending on the steps you take to improve your credit.

The earlier you start rebuilding a low credit score, the sooner you can regain good credit as well. So, don’t feel disheartened if your current credit is not perfect. Check out these tips on how you can repair your personal credit for free.

  • Evaluate your credit report. All consumers are entitled to receive one free credit report each year from the three major credit bureaus (Experian, Equifax, TransUnion). You can request for your free report at It’s a good idea to get your annual free report at the start of 2012, especially if you need to repair your personal credit.
  • Clean up errors. By checking your credit report, you will be able to see whether all the information and charges in your report are correct. Take note that errors can badly pull down your credit score. You can instantly improve your score by a few significant points by correcting these errors.
  • Send a credit dispute letter to the bureau that issued your report via registered post mail. In your letter, point out the exact items in your report that needs to be correct. You should also enclose photocopies of documents that support your claim and a photocopy of the report with the errors clearly marked.
    This process can take up to 30 days. From the date of receipt of your letter, the bureau will conduct an investigation and if your dispute is valid, the necessary corrections will be applied and the bureau will send you an updated copy of your report.
  • Speak with your creditors. Some people think that they always need the help of a debt consolidation company to negotiate their debts. However, you can personally speak with your creditor to negotiate a new repayment term that will work for you.
    Before approaching a creditor, carefully assess your situation and create a repayment plan. Explain to your creditor the reason why you are struggling with repayment and request if your current repayment terms can be modified. You can even ask a creditor to lower your interest rate or waive the penalty fees to make it easier for you to catch up with repayment. Most creditors are willing to modify their terms if they can see your willingness to stand by your obligations.
  • Seek free counseling. You can acquire professional advice from a non-profit credit counseling organization accredited by the government. Check out the NFCC’s (National Foundation for Credit Counseling) website for a list of agencies that offer free credit counseling service.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2013
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  1. Pingback: Avoid Becoming A Slave To A Credit Score Again Through Debt Settlement | credit card debt, debt management, credit card financing

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