Repair clinics and attorneys charge up to $3,500 to clear up credit reports professionally. However, you don't need to spend all that much because you can do it on your own. Here are tips and tricks to remove negative records from your credit report - it will surely make you look credit-worthy before the lender's eyes! Read on.



STEP 1: Check your credit report. A credit reporting agency pulls together a credit report electronically. Their report includes information from where you live to details about your paying habits, bankruptcy and arrest information. This information compiled by them will be used to verify whether you would be a good borrower or not. It may also be used by a business to decide whether you would be a good employee.

Contact the credit bureau that has your file. You are entitled to one free credit report per year and you are also entitled to a free credit report if you have been denied credit within the past 60 days.

Review it carefully for inaccurate information, especially offensive info that will significantly affect your credit rating and the possibility to qualify for credit or a loan. At times the creditor does not re-verify in time or the credit bureau is busy and does not handle your dispute properly. You can delete this credit record from your credit report later (Step 3).

Be meticulous in checking that all information is correctly reported. If you see negative information on your report, verify them as soon as possible, you cannot afford to have errors and off putting remarks in your report.

STEP 2: The law says that the credit bureau should investigate the matter within the allotted time. Remember that every negative credit record on your credit report can be negated by you at any time. The credit bureau must re-investigate and if that item cannot be verified within a reasonable amount of time, that credit record must be removed from the credit file. They must provide you with a free copy of your corrected credit report. Send your dispute letter to the credit bureau via certified mail, return receipt requested. If the credit bureau completes its investigation and decides that the negative information should remain in your file, you can add a letter of explanation to refute the claim.

STEP 3: After erasing unconstructive items from your report, your next task is to rebuild your credit. Add positive credit items to your report by taking out a small secured loan or obtaining a secured credit card. You can also build good credit by having someone with a good credit record cosign on your application for a small loan.

Remember that your credit score is essential in your quest to obtain credit. Your credit score will determine whether you need a new credit card, an auto loan, or a mortgage. Lenders use your credit scores to decide whether you are a good credit risk. With these tips and a high credit score, you are on the way to get the best rates for your credit.