If you’ve incurred huge amounts of credit card debts, you can either consolidate them through credit card consolidation to improve your credit score, or you can also contact a credit repair company that will help you repair your credit score by following certain points. The question that bothers most people with poor credit score is whether or not it is fair enough to repair your credit on your own. Here are some steps that will guide you throughout the credit repair process and ensure an improved score.

1. Order a credit report: You’re entitled to get a free copy of your credit report from any of the three credit reporting agencies. Avail this opportunity and make sure that you order a free credit report in order to understand where you stand financially. While you may already have an idea of the negative impacts on your credit report, you may also get to know some updates about your score. Check your score to analyze any kind of errors and dispute of you find them. This is the first step that you can take while seeking credit repair help.

2. Tackle your past due accounts: You must be aware of the fact that your payment history comprises of an important part of your score. How many past payments are due is an important factor that influences your score. It is your financial responsibility to tackle all you past due accounts so that they do not have a negative impact on your credit score. Gather funds from anywhere possible and concentrate towards paying off your past due accounts and clear them off. Falling behind on such payments tarnishes your credit score.

3. Get a new credit card: You might be surprised to read this point, but you might be unaware that getting a new credit card can often improve your credit score. As your creditors already know that you cannot handle your finances properly through your credits core, it’s high time that you prove them wrong by getting a new credit card and trying your best to remain current on it. If only you’re sure about your repayment abilities, get yourself a card, because re-defaulting on your new credit card can be dangerous for your financial life.

Therefore, if you’re up to your eyeballs in credit card debt, first go for credit card consolidation to improve your credits core. Also make sure that you opt for do-it-yourself credit repair in order to nullify all the errors in your credit report and make it immaculate. You can boost your options for obtaining new lines of credit by repairing your credit score.

In my opinion, trying to achieve a perfect credit score is a waste of time. The truth is that unless you are simply obsessed with that, a perfect credit score is not needed. Just maintain them over 760. Pay your bills on time, neither apply nor open new credit card accounts but stick to the ones you have for years and pay credit card balances in full monthly. If you do carry a balance or a few, keep them under 10 percent of your combined credit limits. Then over the time, you will get a near perfect credit score and rating.

Q: I have a question on TransUnion codes. Got my credit report and can’t quite figure out what 09P means? Also I have R03 codes in two places. My TransUnion credit score is only 574.

A: TransUnion code 09P most probably stands for bad credit charge off. Is that on the far right under under MOP column and under Collections section? 09 code is for a charge off and ‘P’ is likely just a date indicator.

TransUnion R03 codes indicate your revolving accounts which are more than 60 but less than 90 days past the due payment dates. Basically it sounds like you have two bad credit card accounts which are over 60 days late. No wonder your credit score is low.

Here are the TransUnion codes for account type and how you pay those accounts.

Type of Account
O - Open Account (30, 60 or 90 days)
R - Revolving or Option
I - Installment
M - Mortgage
C - Check credit (line of credit)

Current Manner of Payment
00 - Not rated, too new to rate, or approved but not used
01 - Pays as agreed
02 - 30–59 days past the due date
03 - 60–89 days past the due date
04 - 90–119 days past the due date
05 - 120 days or more past the due date
07 - Paying or paid under Wage Earner Plan or similar arrangement
08 - Repossession
8A - Voluntary repossession
8D - Legal repossession
8P - Paying or paid account with MOP 08
8R - Repossession; redeemed
09 - Charged off to bad debt
9B - Collection account
9P - Paying or paid account with MOP 09 or 9B
UC - Unclassified
UR - Unrated

See more credit report codes that you can encounter.

I bet many of you are going to get a kick out of it. The Fair Debt Collection Practices Act or FDCPA was created in 1978 as a part of the Consumer Credit Protection Act, specifying strict guidelines under which debt collectors may conduct business, defining consumer rights and providing consumers with an avenue for disputing and obtaining debt validation information in order to ensure its accuracy. The FDCPA also prescribes penalties and remedies for violations of the Act. Basically it gives you some ammunition against collection agencies, prohibiting them from using abusive and deceptive collection practises among other things.

Well, today TransUnion announced that it will start utilizing data from FDCPA Case Listing Service LLC to provide an added feature for batch records delivered via TransUnion Collections Prioritization Engine. The new solution, named FDCPA Case Search, allows TransUnion to alert debt collectors about collection accounts that have previously been involved in FDCPA litigation to assist collectors in determining strategy. So basically, the idea is to help collection efforts against you, the consumer. Supposedly, in 2008, 5,383 cases were filed against collection agencies in U.S. District Court for alleged violations of the FDCPA. The expected figure for 2009 is well in excess of 7,000 for the whole year.

My heart goes out to those poor collection agencies, but I have always thought that the purpose of credit agencies, TransUnion included, is to simply gather, arrange, process and report. But then again, in a slow economy, everyone wants to make a buck. See Free TransUnion credit report, FICO score and dispute.

Q: A judgment was filed last February and I just paid it in full yesterday. Does a paid judgment affect credit scores? Can I remove a paid judgement from my credit report? I would like to buy a house in a few months.

A: Of course, paid judgment stays on your credit report for at least 7 years and affects your credit scores very negatively. You may still try buying your house if your middle score is at least 620. You can even get an FHA loan, but unless you had quite an establish credit history prior this judgment, I doubt you scores are above 620 now. But check them as soon as you can. Get the same mortgage broker whom you may later use for home purchase to run your credit report. Can you remove a paid judgement from credit reports? Theoretically, you can try get this judgment vacated. You would have to file Motion to Vacate Judgement. Procedures also vary depending on state. See here.