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The lesson you should have learned in Part 1 (click the above link if you missed it) was for you to get your mind straight and to recognize that you have a problem with your debts and you need to do something to to repair your credit. This first step is crucial.

Once you recognize the fact that you do have a debt problem, this should be enough motivation for you to start acting on it. Of course, before you relieve yourself of your debts you need to get all the information you need first. That information is your credit reports. Once armed with these reports you can start to do something about it.

This second step takes you from the recognition phase to the action phase.

Step 2 – Acting on Your Credit Reports

As mentioned above, the first phase in repairing your credit deals with acknowledging your debt problem and then to obtain your credit reports. Once these credit reports have been received, you need to review these reports and see if there are any charges on them. If you agree with these charges then, of course you will need to act to solve these charges. On the other hand, if the charges on your credit reports seem suspicious or out of line, then you also need to act on them.

Contact the three credit bureaus (Experian, Equifax, and TransUnion) as soon as possible and petition these charges so that both you and the bureaus understand them clearly. Remember that these claims against your report affect you. Under the FCRA Act (Fair Crediting Reporting Act), you have the right to file a claim with them to help you with these charges. This could be a very important step in helping you repair your credit rating. The FCRA Act was passed into Us Congress to protect US citizens against claims filed onto credit reports that do not belong to you.

You would do well to take advantage of this law. Understanding the steps necessary to credit repair is essential if you wish to build up your credit rating. Once these credit report charge errors have been disputed and solved, you will need to wait at least six months before applying for a loan or credit card. After this time has lapsed, most credit bureaus will remove these errors completely.

You should also be aware that sometimes you may have to argue with the credit bureaus, as they may neglect to remove the errors. If you have, any delinquencies on your credit report be sure to take care of them as soon as possible. One thing I forgot to mention in the above paragraph is that while you are waiting for the six months to lapse you should do other things to continue being in good standing such as continuing to pay your bills on time, or at least make substantial payments on them to avoid any bad flags on your credit reports.

If you intend to apply for a loan later, make sure that you meet all payments required of you. In addition, it is wise to keep an updated copy of your credit report on hand if possible. It also good advice to monitor your credit reports on a regular basis so that you are always current on your credit rating. Remember that your goal is to repair your credit. Taking that first step is the important beginning to build a great credit score and credit rating.

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