How Credit Repair Works

Disputes

You may be able repair your credit by removing negative items from your reports through filing disputes with the three major credit bureaus. The law says that every item on your credit reports must be accurate and verifiable. If you find negative items that you believe to be incorrect, you have grounds to challenge them. You can do this via an online form. The credit bureaus must investigate the item, and if the creditor cannot verify or it simply doesn't respond, it will be removed from your credit report.

Payments

Even if you have a negative payment history in the past, you can immediately begin repairing your credit by paying your bills promptly. Keep all of your accounts current so new lenders will be able to see that your financial condition has improved. Each on-time payment is another step toward repairing your credit rating.

Time

You will not be able to remove legitimate negative items from your credit report through disputes, but if you let enough time pass, your credit report will repair itself. Most negative items like late payments, charge-offs, judgments and even bankruptcies can only remain on your credit report for a certain number of years. Depending on your state of residence, they must be removed in seven to ten years. When they drop off after the appropriate time frame has passed, your credit score will get a big boost.