What is a credit report?
A credit report is a detailed description of how you have managed your credit in the past. Companies examine this report before deciding whether to give you credit. When a company denies your request for credit because of your credit report, it must tell you so and identify the credit bureau that supplied the report. If you have been denied credit based on your credit report, you can request a free copy of the report within 60 days of receiving the notice of the action. The credit bureaus are required by law to share with you any information they have on file about you. If you have not been denied credit but desire to have a copy of your credit report, you can request a copy for a fee. The charges vary from state to state but generally a credit reporting agency will charge a fee of $5 to $20 for a copy of a credit report.

You are entitled to one free report per year if you can prove that you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud. You can get a copy of your report from the following credit reporting agencies.

1. Experian--(888) 397-3742--www.experian.com
   
2. Trans Union--(800) 888-4213--www.transunion.com
   
3. Equifax--(800) 685-1111--www.equifax.com

What if there are errors?
If you have errors on your report, make a photocopy of the report, highlight the errors, and send it back to the bureau that issued the report, along with a letter of explanation. If you do not receive a response from the bureau within 30 days, the errors should be dropped from your record (Section 611d of the Fair Credit Reporting Act of 1970). If you discover duplicate information on your report, photocopy the report and highlight any duplication. Send the highlighted copy with a letter stating that you want the inquiry and the account information merged. Again you should receive a response within 30 days.

Creditor inquiries stay on your report for a minimum of six months; employer inquiries remain on your report for two years. If you have unsolicited inquiries on your report, you should photocopy and highlight the report and send it with a letter requesting that the inquiries be deleted. Remember, though, that the law states that your report can be pulled by anyone with “legitimate business needs.” The bureau should report back to you within 30 days.

Delinquencies, garnishments, repossessions, court orders, eviction for nonpayment, and missed child support stay on your report for seven years. Bankruptcies remain on your report for 10 years from the date of filing. If an item remains on your report longer than this, send a highlighted copy and a letter requesting the bureau to update your report, and await your response within 30 days.

If you do not have a follow-up in writing from the credit bureau within 30 days, you should contact the bureau and request to speak with a customer-service-level manager directly. Once you have a manager, be sure you know his or her name and full title. Clearly spell out what service you need and the timeline in which you would like your concerns addressed. Follow up your conversation with a registered letter, outlining the conversation with the manager and any agreements or arrangements made with the manager.

You also have the right to add, free of charge, a 100-word statement to your credit file, explaining why your report has suffered or explaining your side of any dispute. Anyone who looks at your report will also see your explanation.

Credit repair
Negative information contained in your credit history can be removed only by the creditor who reported it. Therefore, be very wary of anyone who claims he or she can remove or clean ratings from your record. If you agree to pay off a portion of your debt in exchange for a better rating, be sure you get the arrangements made in writing from the original creditor, not from a collection agency. Send a copy of the agreement to the credit bureau.

There is a brisk business among credit repair companies that charge from $50 to more than $1,000 to repair your credit report. These companies seldom can do what they promise. There are no quick and easy cures for a bad credit history, so if approached by one of these companies offering to “clean up your report” remember the following.

1. Your credit history is maintained by private credit bureaus that collect information reported to them.
   
2. The credit bureaus can legally report negative credit information for seven years and bankruptcy information for ten years.
   
3. Accurate items reported during the reporting period cannot be erased by anyone other than the original creditor.
   
4. Time is the only thing that will heal a bad credit history.
   
5. The only information that can be changed are items that are actually wrong or are beyond the reporting period.
   
6. If there are mistakes or outdated items on your report, you can correct the report yourself. In essence, you can do anything a credit repair company can do—free.

Conclusion
“A good name is to be more desired than great wealth, favor is better than silver and gold. ” (Proverbs 22:1). It takes a long time to build up a good reputation but very little time to destroy it. If you have repaid all your past debts, you can contact each of your creditors personally and ask them to review the credit rating they gave to the credit bureau. However, there is no quick fix to bad credit. The best way to salvage your name is through disciplined use of whatever remaining credit you have over a long period of time. It may take some time to prove your discipline, but don’t give up.