For people who want to improve their bad credit history, several steps must be done.  How long will it take before you can completely repair bad credit?  This would depend on the weight of your bad credit problem and your financial status.  Below are the basic steps that you can do to repair bad credit.

Disputes and Credit Repair

The first step in rebuilding bad credit is to check the accuracy of your credit report.  It is not a rare case when unauthorized charges are the reason behind one’s poor credit.  If incorrect charges or wrong information are pulling down your credit score, you must dispute these errors right away.

Generally, the investigation takes up to 30 days upon the receipt of your dispute letter.  After the 30-day period, you should be sent a response from the credit bureau regarding your dispute.  If the issue has been resolved, you will also be sent an updated copy of your credit report.  If you’re disputing more than one complaint about various creditors, it may take a longer time to resolve the issue.

Improving Your Credit Rating

What if your credit report is accurate?  Then the reason for your bad credit could be because of untimely payment or overdue charges.  To improve your credit, you need to pay off all your past due debts to your creditors.  But what if you can’t pay off all your debts at once?

An important step is to negotiate with your creditors.  It is possible to reduce the actual amount of your debts by negotiating with your lenders.  Let your lender know about your current financial situation.  Request for a modification of your repayment term.  You can also request them to waive your late fees for easier repayment.

Some people may be skeptical about negotiating with creditors.  Although not all lenders would give in, it is still a step worth a try.  In fact, many lenders are willing to give their clients easier repayment terms than to see them file for bankruptcy.  If you feel that you can’t speak with your creditors on your own, you can seek help from a trusted credit counseling agency to negotiate for you.

If a negotiation has been reached, do your best to stick with the new repayment terms.  Be consistent in submitting your payments. Avoid incurring new debts especially while in the middle of your repayment.  If you keep up this habit, you should be able to improve your bad credit history within the first six months or less.

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