According to the Federal Trade Commission, most credit repair businesses are scams, and as such they advocate consumers take a "do-it-yourself" approach to credit repair by working with creditors to remove inaccurate information, and by setting up and sticking to a payment schedule to pay off debts that are legitimately owed. There are no easy fixes when it comes to repairing credit, and in particular, only time can remove accurate negative reports, but taking a personal, and active roll in the repair process will save consumers money and reduce frustrations in the long run.
Begin the credit repair process by ordering credit reports from Equifax, TransUnion and Experian, the three major credit reporting companies. Examine these reports carefully for errors, such as misspelled names, wrong dates or inaccurate account information. When mistakes are found, send a letter to the credit reporting company pointing out the mistake. Legally, consumers have a right to have these errors removed from a credit report. Address any overdue bill payments, and contact creditors directly to work out a payment agreement. It is also possible to negotiate with companies to have negative items removed from the report.
Take proactive steps to rebuild a good credit history by paying current bills on time. These bills include utilities, rent, credit cards and loans. Paying the minimum amount on time for an extended period of time establishes credibility with financial institutions, which boosts credit ratings.