How to Repair a Credit History

If your credit history is in shambles, it can mean expensive car insurance premiums, high interest rates and increased difficulty when trying to obtain credit. Credit blemishes occur for a variety of reasons, including late payments, high debts and past bankruptcies. While some of these can stay on a credit report for many years, none is permanent. Bad credit can be repaired by taking a few basic steps.

Instructions

1

Obtain a copy of your credit report from each of the three major credit bureaus. The federal government entitles every U.S. citizen to one free copy of his or her credit report each calendar year. If it has been less than a year since you last viewed your credit report, you may have to buy a copy. However, if you have recently applied for credit and were denied, you are entitled to another copy of your credit report, regardless of the amount of time since you last viewed it.

2

Make a list of each item on your credit report that is incorrect. This could include the amount of time you have lived at your current or previous address, your current income or even false reports of account defaults and late payments.

3

File a dispute with any credit bureau that produces an inaccurate credit report. A dispute form will be included with each copy of your credit report. Be prepared to offer any supporting documents, receipts, check stubs or financial information to disprove the errors. The credit bureau is required by law to investigate each inaccuracy within 30 days.

4

Reduce your debts and maintain regular, on-time payments to your creditors. If monthly payment minimums and interest rates make on-time payments seem impossible, consider applying for a debt consolidation loan. Be sure to pay off any collections on your report, and stop making additional purchases on credit. Aim to pay off at least 50 percent of your debts as quickly as possible.