Review and print out a free copy of your credit reports from www.annualcreditreport.com. They'll ask you about your prior addresses and items that may appear on your credit record to verify your identity. Also, you'll be directed to each of the 3 reporting agencies independently from that site. Once you access your reports, you'll have 30 days to log back in to see the same report. If you want a refreshed copy, you'll need to pay for it.

Highlight any negative entries. Creditors don't always report everything to every agency so look for differences on each report. If they remove a negative item the are required to notify the other agencies so they can remove it as well if they have it recorded.

Write a letter explaining why each of those negative items should not be on your report. Additionally, if you have an account that's in good standing that's not listed, you can have them add that. You'll need verification and it might be easier to ask your creditor to report it directly.

In listing negative items to dispute, include account names, numbers, dates, etc. Write why you're disputing it as well. Valid reasons are that it's an account you never had, the dates or amounts are wrong, etc. If you don't have a better reason, you can always say you don't recall having that account. I'm not saying to dispute items you know are true because most creditors have staff dedicated to verifying accounts and that won't get it off just because you listed it. Plus, lying can get you in trouble.

Include your full name (incl. middle name and generation), current mailing address, date of birth, social security number, complete mailing addresses for the last two years.

Include a copy of a government issued ID AND a copy of a utility bill, insurance or bank statement. NOT valid: credit card statements, voided checks, lease agreements, magazine subscriptions, or post office forwarding orders. If you don't include these items exactly, the reporting agencies will kick your letter back and tell you to do it again.

Send your letter USPS certified mail. If you don't, you run the risk of them "losing" your letter and you having no way to verify you sent it.

Check the tracking you got on the certified letter. They are required to investigate within 30 days. You should hear back from them shortly after that.

That's it. You can now take steps to start building better credit.