Credit Repair: Good Credit References

There is, unfortunately, no magic credit repair wand. You will need to devote a good deal of effort, discipline and patience to the task.

It is a good idea to begin by requesting copies of your credit report from each of the three credit reference agencies. Credit reference agencies do not make credit decisions. They only compile and provide identifying and credit history information to potential lenders. Increasingly, this information is also provided to potential employers.

The three credit reference agencies are TransUnion, Experian and Equifax. Most states provide for at least one free credit report annually. You can usually obtain your report by making a request through the automated telephone service, by email and by regular mail (a telephone request is easiest, in my opinion). Once you receive your report, review it carefully for errors or outdated information. Any problems should be reported in writing immediately. Include whatever supportive documentation you have available to substantiate your claim.

If you are like a growing number of Americans you probably have at least one negative credit reference on your report. These include such credit crimes as:

Obviously, some credit crimes are more serious than others. But generally, your credit report will be more attractive to lenders if the negative credit references are fewer (preferably nonexistent) and/or not recent.

Because lenders do not know you personally they must rely on some system that allows them to make wise credit decisions. In other words, if you've been denied credit know that it isn't personal, its business. After all, would you give money to someone who has a history of not paying it back and/or paying it back late? Probably not!


Rather than getting down on yourself, make a plan to develop some good credit references. As you pay off and pay down debts, your credit report, and therefore your appeal to lenders, will improve.