How to Clear a Bad Credit Rating

A bad credit rating makes it difficult, sometime impossible, to get a line of credit. Every lender checks your credit rating before deciding whether to approve your credit application. The more often you apply for credit and get declined, the more your credit rating declines. If this is happening to you, it's essential to act to clear your bad credit rating.

Instructions

1




Start to clear a bad credit rating by getting your credit reports online.

Get your credit history reports online to assess what you need to do to clear your bad credit rating. The reports are free, annually, from AnnualCreditReport.com. It's easy and quick: Reports can be viewed instantly so you can start the process to clear a bad credit rating fast.

2

Click on AnnualcreditReport.com in the Resources section. Select the state where you live. Click "Request Report." Complete the form. Enter the security details at the bottom of the form. Click "Submit." After your identity has been verified, follow the simple online directions. You reports are available to view instantly and you can start to clear a bad credit rating.

3




Errors on your credit report affect your credit rating: Get them corrected.

Check for errors on the reports. It's the fastest way to clear a bad credit rating. Contact your lender and the credit reference bureau. If they accept that there are errors, your report will be amended within two weeks. You have started to clear a bad credit rating.

4

Check for poor payment records. Late and missed payments affect your credit rating. Rectify by getting payments up to date. Ensure future payments are made on time. As soon as you have cleared arrears, your record will be updated. Three to four months of regular, on time, payments will restore your payment history.

5

Pay off any small outstanding loans. Once settled, they are recorded on your credit report as paid off. Any loans paid off in full help to improve your credit rating.