How to Restore My Credit for Free

When you are turned down for a loan or credit card, the first thing to do is ask that company for a copy of your credit report. By law, they must provide you a free copy, if requested within 60 days of the denial. You can also obtain a free report from Equifax, Experian and TransUnion once every 12 months. There is no quick fix to repair your credit. According to the Federal Trade Commission (FTC), "... it takes time, a conscious effort and sticking to a personal debt repayment plan."

Instructions

1

Request a credit report. If you have been denied for a loan or credit card, you have 60 days to ask that company for a copy of your credit report. Also, according to the federal government, you are entitled to one free copy annually. You can request it from all three nationwide consumer reporting companies--Equifax, Experian and TransUnion--via one website: annualcreditreport.org.

2

Review your report for incorrect information or negative comments. This could be an incorrect credit limit or balance or perhaps a late payment you actually paid timely.

3

Write a letter, if you find inaccurate information. Specify exactly why the items are incorrect. Be sure to include copies of documentation.

4

Request an investigation of the disputed information. By law, according to the Federal Trade Commission, you are allowed to ask for this investigation, which must be completed within 30 days. This is done at no charge. It is the responsibility of the consumer reporting company and the business reporting the inaccurate information to correct your report once an inaccuracy is identified. The removal of this information from your report will increase your credit score.

5

Develop a workable budget to pay off the accurate debts. If you are unable to do so, contact the creditor and discuss the possibility of a repayment plan.