The Do-It-Yourself Approach

What is The Do-It-Yourself Credit Repair Method?

Under the Fair Credit Reporting Act, you have the right to launch an investigation into any negative credit item you find on your report that is in error. This also includes the lack of current or updated information. For those instances where the negative items are totally accurate and up to date, however, no one can remove that item until its predetermined limit is up.

With that said, the "do-it-yourself" approach to credit repair is an alternative that many people choose. There are numerous articles on the web, books and kits for sale that offer to help guide individuals in the right direction.

The drawback here is that this can be a very long, time-intensive process that does not yield quick results. Credit bureaus receive hundreds of thousands of dispute letters every day that must be addressed within 30 days. Without an aggressive follow up strategy, letters that are not well written or contain incomplete information often get pushed to the bottom of the pile.

Many have reported that they have trouble following through with necessary steps during the normal operating business hours of the credit bureaus. This process can lead to more time away from work and get you into trouble with employers. No one should risk losing a job, especially those who already have credit problems.

Even when investigations are launched, do-it-yourselfers often run into problems providing all the facts in a manner that's easy for the credit bureaus to utilize. It's one thing to write "I paid that off last May" and another to provide a copy of the cancelled check as proof of the payment. These kinds of mistakes can take extra time away from fixing the problem.

To make matters worse, you can be sure that you won't be getting much help from the creditors that already have a negative view.

Another problem with the do-it-yourself method is that a lack of expertise in credit repair can leave you vulnerable to scam artists. Not making the best choices when it comes to credit repair can cost you dearly by either worsening your debt situation or lowering your credit score. (Learn More About The Effects of Bad Credit). Some of these types of scams include:

• web sites or services that claim you can legally starting a new credit file
• large, expensive loans with high interest rates
• web sites or services that sell information already available for free

Read our Featured Article comparing the Do-it-Yourself Method to using a specialized law firm.