What is the best way to repair credit history?

Answer 1

If it's so bad you don't have a credit card you can try a secured credit card. (Where they keep an amount of money you send them in a savings account for a certain amount of time to back up your purchases. Depending on the card you can start with as little as a $100, but you actually have to USE the card for it to reported. Eventually they'll up your credit limit and you can get your money back after so a couple of years. I had a secured card with Providian a few years ago, high interest rate but no problems! I think after I got a real credit card I called and cancelled the account and just asked them to apply my money they had to my balance. I was nervous about getting my money back so I went and bought something that put me close to my limit anyways right before calling!) They will report your ontime payments to your credit reports and it will help improve your credit status.

Like others said you definately go over your credit reports and check for errors!

Also, if you believe that you have a good reason for not paying something that is on your credit reports you can write a "note" that explains the situation to be attached to your credit reports. (You would send these to all 3 credit report companies. You'd have to search on requirements and where to send them.) That may or may not help! Say for example you were ill for several months, had no income, you're just getting back to work, the amount due was in dispute and you have proof, etc. A lot of credit decisions are made by a person somewhere, you can hope to hit a soft nerve once in a while!

Answer 2

1) Start paying bills on time

2) Pay off anything less than 2 years old.

3) Establish accounts that have a positive rating

Improving scores affected by negatove history takes time. There is no overnight fixes but the above 3 things will prove to be effective over a 6 month period.

I write a blog on the subject of credit management, mortgages, real estate trends, etc. Check it out for more information that may be helpful.

Answer 3

It is a long process. You can get advice from places like creditboards.com. Don't use a credit counselor. Most of those place will rip you off. Get a copy of all 3 of your credit reports and disect it. If anything and I mean anything is incorrect (especially if it's a bad entry), contest it. It may end up being removed. Read up on your rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

Answer 4

pay bills on time consistently and your credit will rebuild