How To Repair Or Remove Credit Report History

A credit report tracks an individual's history of paying debt obligations. Late payments, high credit card balances and inaccurate information could be dragging down your credit score. Over 30 million people in the United States struggle with credit issues that make securing financing difficult, according to MSN Money. Repairing or removing poor credit history can help boost your credit score.

Instructions

1

Review your credit report. According to the Federal Trade Commission (FTC), consumers are entitled to a free credit report from each bureau (Equifax, TransUnion and Experian) annually. Order a free credit report online from AnnualCreditReport.com. Review the reports carefully, noting inaccuracies such as accounts you don't own or late payments that are inaccurate.

2

Remove incorrect information. Inaccurate information can be removed by completing a dispute form with the appropriate credit bureau. The credit bureaus offers dispute forms on their website. Be prepared to provide documentation. For example, consumers disputing late payments should furnish copies of cashed checks or bank statements that show the payment was received on time. Credit bureaus typically respond to claims within 45 business days. Approved disputes are removed from the credit report.

3

Lower credit card balances. Credit card balances that exceed 30 percent of your credit limit drag down credit scores. For example, if you have a $10,000 credit limit and carry a $4,000 balance, this is 40 percent of your available credit (which drags down your credit score). Paying off credit cards could help repair credit.

4

Pay debt obligations on time. Timely payments make up a big piece of your credit score, according to MSN Money. If timely payments have been a challenge in the past, set up automatic payments through your bank. This can be accomplished through your financial institution's online banking feature.

5

Settle accounts in collections. When repairing credit, collections should be a top priority. Contact collectors and set up realistic payment options. Paying these debt obligations on time will help repair your credit over time.