Step One -- Learn what's really in your credit reports. Check all three major credit bureaus, request your free credit report from each, and review each report with a fine-tooth comb to uncover hidden errors and outdated information, and dispute derogatory credit entries that don't belong there.

Order your free credit report online.

There, you will be able to get your credit reports free from the Big Three credit bureaus -- Experian, Equifax and TransUnion. They have established an official web site to help you get your free credit reports.

Print out each of your free credit reports so you will have a hard copy to refer to as you start to dispute credit report entries.

To contact the three major credit bureaus directly by mail, phone or the web:

Experian
Experian, P.O. Box 2002, Allen, TX 75013
www.experian.com
1-888-397-3742

TransUnion
TransUnion, P.O. Box 2000, Chester, PA 19022
www.transunion.com
1-800-888-4213

Equifax
www.equifax.com
1-800-685-1111
Equifax Disputes? Contact: CSC Credit Services, Box 98122, El Paso, TX 79998
www.csccredit.com
1-866-264-4878

Don't forget: Click here to get your credit reports for free.

Once credit reports are received you can begin reviewing your credit reports and taking action to dispute inaccurate or outdated credit information contained in your credit reports.

Step Two -- Review your credit report for errors.

We've presented a full page of info at "How to read and understand your credit report"

There, the following important issues remain: know what the codes in your credit report mean. Study them. Call or go online and get the facts. You need to know what each entry mean, whether it is a derogatory credit entry or a positive mark.

If serious negative entries exist, you must take action to get them removed as soon as possible. Otherwise, you'll have to wait for seven, maybe even 10 years, for these entries to fall off your report. That's a long time to suffer needlessly from bad credit, when it's easy to do somehting about it today!

Maybe somebody else has their bad credit marks on your credit report. That's not going to do you any good when you apply for a new loan or apply for a credit card yourself.

Read your credit report. Detect the errors and outdated information. Dispute the errors. Clean up your credit yourself and enjoy better credit!

Step Three -- Learn how to write a credit score dispute letter.

The best way to repair your credit is to write a letter to the CRA (that is, the "consumer reporting agency") describing exactly what information you believe is inaccurate. Include copies (not originals) of any documents that support your claim that there are errors in your credit report that you are demanding be removed.

challenging the errors or outdated derogatory information in your credit history is your right. The agencies are compelled by federal law to recheck the information with creditors who reported to them about your past credit use. We are not advising to throw up credit report challenges that are not true, inaccurate, or frivolous. We are advising that you challenge the credit reports when you know for a fact that errors or mistakes are keeping you from having good credit.

In addition to providing your complete name and address, your dispute letter should clearly identify each item in your report you challenge, list the facts and explain why you are disputing the current information present, and request deletion or correction. Below you will find a sample letter concerning credit card debt.

You may want to enclose a copy of your report with the items in question circled. A copy, not the original -- keep that for your records!

Use a sample credit dispute format like the sample letter below. Send your letter by certified mail, return receipt requested, so that you will have proof of when the CRA received it. At the risk of beating a dead horse, always, always, always keep copies of your dispute letters and enclosures.

Sample Dispute Letter

Use this sample format to remove credit report errors:

Date Your Name Your Address Your City, State, Zip Code Complaint Department Name of Credit Reporting Agency Their Street Address City, State, Zip Code Dear Sir or Madam:    I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.    This item (identify the specific items disputed by name, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.    Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible. Sincerely, Your full legal name Enclosures: (List what you are enclosing)

The CRAs are now required to re-investigate the item(s) in question within 30 days, unless they consider your dispute frivolous.

They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA.

This where your credit has a good chance of improving: If the information provider discovers that the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can correct this information in your file.

Moreover, disputed information that cannot be verified must be deleted from your file.

If your report contains inaccurate information, the CRA must correct it.

If an item is incomplete, the CRA must complete it. For example, if your file shows that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that your payments are now current.

If your file shows an account that belongs only to another person, the CRA must delete it.

When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice of its intent to reinsert the items that includes the name, address, and phone number of the provider.

If you request, the CRA must send notices of any correction to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.

In addition to writing to the CRA, you should tell the creditor or other information provider in writing that you dispute an item. Be sure to include copies (not originals) of documents that support your position. Many providers specify an address for disputes. If the provider continues to report the disputed item to any CRA after receiving your notice, it must include a notice that you dispute the item. If you are correct—that is, if the information is not accurate—the information provider may not report it again.

Step Four -- Enlist the help of consumer debt counselors.

Open up your local phone book to the heading, "Credit Counseling Agencies" and you'll find several these days who can usually help you straighten out your bad credit in no time flat.

Or you can check online at DebtAdvice.org to find the nearest and best qualified credit and debt counselor in your area. Seek the help of those who offer their services for free or at low cost. You need to be careful of getting deeper into debt at this point.

Many of these offices are staffed by committed, professional debt relief counselors who will work tirelessly to help you. The bad news is that other offices are staffed by employees who are only there to draw a paycheck. If that's the case, investigate and interview "for-profit" credit counseling companies. You can always request information online from Credit.com. They offer great advice for free to help you. We highly recommend their services.

Credit.com is now offering a special offer of a free credit report, a credit score and a debt analysis, all on your desktop in seconds, by clicking here.... Good credit help is just one click away!

To learn your full rights under the FCRA, visit www.ftc.gov/credit.

Ready to repair your credit? Get started at FindHow2.com today!

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