Late payment is the main reason for a bad credit report. To avoid a bad credit report all payments due should be paid in time and all the time. As most the time various factors such as how many times the late payment was made, what amount was due, by how many days the payment was delayed etc are considered for a bad credit report.

The bad credit report also depends upon the specific lenders. Some of the lenders may not report to credit bureau if you are late by a few days, however they may charge a late fee. As per one estimate if you are late for a single payment for one month, your credit score may go down by 50 points.

There are various agencies claims that they can repair your bad credit, you should not believe on such advertisements and try to take some steps yourself for repairing credit. Instead of taking help from these companies by paying their fees, you can get the information and take necessary step to repair your credit rating.

Dispute:

First of all you are entitled to receive a free credit report, if your application for credit has been denied. The company will provide you information within 60 days of receipt of your application and will give you name, address and phone number of the consumer reporting company.

If you think that some of the information is inaccurate, you may report it to the consumer reporting company in writing and by submitting it personally or by certified return post. You must include all documents to support your claim. You should request the consumer reporting company to remove the inaccurate clauses.

Consumer reporting company investigates the matter and also forward all the relevant document to the organization. The investigation is generally carried out within 30 days and if found disputed information accurate, is reported to the three nationwide consumer reporting companies so that your records can be corrected.

If the investigation carried out by consumer reporting company does not resolve the dispute, you may request to provide a statement of dispute in your credit files. You may also initiate to provide this information to the lender by submitting copies of the disputes.

Negative Credit Report:

If you have really a negative credit report, you will have to wait for seven to ten years, as most of the consumer reporting companies keep the negative information for seven and bankruptcy information for ten years. Generally the period counts from the date when the event took place.

Credit Repair Companies:

If you are taking help of credit repair organization, the credit repair company gives you a copy of the act and signs a written contract with you. The contract mentions details about your rights, payment terms, payment duration, total cost, total duration and any guarantee offered by the credit repair organization. You must read the contract in detail and must understand all the terms and conditions before signing it.

If you have specific problems with any of the credit repair companies, you should report the matter as most the states have laws for credit repair companies. You can report the matter either to local consumer affair officer or state AG (Attorney General).

Private Lenders:

You must try to understand your credit needs and, if you have a good credit paying capacity in recent years, you may be allowed credit by many lenders. Although the rate charged by these lenders may be higher than the bank, if you need urgent money these may be suitable to fulfill your credit requirements.