Fixing what's wrong, dealing with what's right but can be fixed, and building a new good history over time are all parts of "repairing" your credit. But there is a clear, logical order to work through them. There is no way to skip any of them. As you read these reports and decide if you need outside help, this is the whole process.

Step 1: Take a look at all three of your credit reports first

Start at AnnualCreditReport.com. It is the only site that is legally allowed by the federal government to offer free Equifax, Experian, and TransUnion credit reports. Federal law says that each office must give you a free report every week, so there's no need to pay a third-party site to do this step.

Don't just pull one; pull all three. Bureaus don't always have the same information. For example, a late payment might appear on two reports but not on the third, or a debt in collections might only be reported to one bureau. If you only fix your credit based on one report, you might miss problems that the other two reports might show.

Step 2: Carefully read each line item and mark any mistakes you find

Look for these things in each account:

• Unknown accounts could mean that you made a mistake when reporting or, less often, that someone stole your identity.

• Balances or payment states that are wrong (showed as "late" when you paid on time)

• The same debt is listed twice, sometimes with a slightly different creditor name after it was sold.

• Wrong dates, especially a first-delinquency date that makes a bad item reportable for longer.

• Anything longer than seven years for most bad marks (ten years for Chapter 7 bankruptcy) should have been taken off of your report.

Make a simple list of the account name, what's wrong, and the proof you have to fix it.

Step 3: Dispute every mistake; this part is free

Most companies that charge to fix your credit will do this step for you, but you can do it yourself for free:

• The Equifax website is equifax.com/personal/credit-report-services.

• Experian: www.experian.com/disputes

• TransUnion: https://transunion.com/credit-settlement

Attach proof (copies only, never the originals) of the error, such as payment records, account statements, or anything else that goes against it. Bureaus usually have 30 days to look into something. The Fair Credit Reporting Act says that the information must be taken down if the creditor can't confirm it within that time frame.

In every argument, be clear and give facts. Blanket disputes like "this isn't mine" that don't give any details are more likely to be rejected quickly. Also, disputing everything can be seen as pointless, which slows down your real disputes as well.

Step 4: Try a goodwill request for correct items

A goodwill letter asks the creditor to remove something from their records as a favour, not because you don't believe it's true. This is done if the information is correct but only shows one mistake in a long history of paying that particular debt. When does this work best?

• Since then, you've made all of your payments on time to that lender.

• You have an honest, clear account of what took place.

• You're not writing to a big national bank, but to a smaller lender or credit union. This is because smaller providers tend to be more flexible.

It's not a promise, but it doesn't cost anything and only takes minutes to send.

Step 5: Talk about pay-for-delete accounts for collecting

You usually have more bargaining power with third-party collectors than with the original creditor when the debt was sold to them, since the collectors usually bought the debt for a very small amount of its value:

1. Talk to the debt collector and offer to take the account off of their record in exchange for payment (full or negotiated settlement).

2. Before sending any money, make sure the deal is in writing. A verbal promise is not legally binding.

3. After you've paid, check to see if the account was really deleted, and if it wasn't, file a straight dispute.

Step 6: Deal with what's still open and not paid for

You can only dispute and negotiate things that are wrong or can be changed. For real debts that haven't been paid and can't be realistically disputed:

• Pay down any accounts that are in collections first, starting with the smallest or most debt-loaded ones.

• Do not let old debt get a new age by making a small payment without knowing how it might restart the statute of limitations in your state. Before you make any payment on very old debt, check this out.

• If you have a lot of unpaid bills at once, you might want to look into a debt management plan through a non-profit credit counselling service.

Step 7: Make a new, good past at the same time

Repairing your past isn't just about getting rid of bad things; adding good things actually cancels out any bad things that are still there:

• Make sure you pay all of your bills on time. The most important thing in your score is your payment history, and making payments on time consistently matters more while you're still getting back on your feet after past problems, not less.

• Keep your credit utilisation low on all of your open borrowing accounts—under 30% is best, and under 10% is even better.

• If you don't have many options, get a secured credit card or a loan to help build your credit. These show a history of on-time payments and are meant to help rebuild.

• Please do not close old accounts that are still active. You can lower your average account age and raise your utilisation ratio at the same time by closing old cards. Account age is a factor in your score.

• Do not open too many new accounts at the same time. Each hard inquiry has a small, short-term negative effect, and adding more than one new account at once can make scoring models think the account is riskier than adding one at a time.

Step 8: Keep an eye on your progress and keep disputing as needed

Credit repair isn't a one-time thing; new mistakes can show up, old debts can be sold and reported again, and things that were fought in the past can sometimes show up incorrectly again. Regularly check your reports (you can get them for free every week at AnnualCreditReport.com) and challenge anything that shows up again incorrectly or wasn't removed as promised.

Step 9: Choose whether to do this by yourself or get help

You can do all of those things above for free. The disputes and goodwill letters are both free, and all it takes to negotiate is time and a written deal. People often hire a credit repair business when:

• They have a lot of bad things happening on a lot of accounts and don't have time to handle and follow up on each case separately.

• They want someone to actively keep track of 30-day response deadlines and set off automatic alerts instead of passively managing it.

• Their goal is more than just cleaning up. For example, they want to rebuild in order to get a mortgage, auto loan, or business funding. In these situations, a bigger plan is just as important as individual disputes.

If that sounds like you, some companies bundle credit repair into a bigger financial plan instead of offering it separately. Heads Up Financials combines ongoing dispute work with a financial strategist overseeing a bigger plan, which can be helpful if your credit repair is just one part of a bigger goal.

What to avoid entirely

• "Credit privacy numbers (CPNs) are sold as a way to start over with a new credit identity. However, these are usually stolen Social Security numbers, and using one is illegal and not a legal way to fix your credit.

• Giving money to a business before it does the work it says it will do. No matter what the fee is called, this is against the Credit Repair Organisations Act.

• Promises of a certain score boost. Because results depend on what's in your report, no real company or self-directed strategy can promise a certain outcome.

A reasonable time frame

• Disputes: Usually, decisions are made within 30 to 45 days for each round.

• Goodwill requests take days to weeks, and there's no promise of a result.

• Talks about pay-for-delete: It could take a few weeks to finish, depending on the collector.

• Scores that go up after rebuilding habits: This is usually clear after 3–6 months of on-time payments and low usage.

• Full fix for a report with many problems: 6 to 12 months most of the time, but sometimes longer for more complicated files.

Questions people often ask

How do I fix my credit? Is debt settlement the same thing?

No, credit repair is all about fixing or getting rid of wrong information on your report. Debt settlement is all about negotiating your debts down, which might or might not change how your account is shown on your credit record.

Can I repair my credit without spending any money?

All of those steps—disputing, writing letters of goodwill, and getting back into good habits—are free for you to do on your own. You aren't getting access to a process you couldn't do on your own when you pay a company for their time and knowledge.

How much is it likely that my score will go up?

It all depends on what is being fixed or taken away and how much good history you add. If several mistakes are fixed and a person has a year of clean payment history, they can see big improvements. On the other hand, someone with mostly accurate negative marks will see gains that are slower and more gradual because of rebuilding and getting older.

Is it dangerous to argue about something I'm not sure is wrong?

You should only argue things that you have a good reason to think are wrong. If you question everything, no matter how valid it is, you might be marked as pointless, which can slow down disputes that do have validity.