How to Fix and Restore My Credit Report

If you are the victim of identity theft or a credit card issuer has falsely reported delinquent accounts on your credit report, you'll need to fix and restore your report before obtaining new credit accounts. By documenting and reporting incorrect or fraudulent activity on your credit report, you make it easier for credit-reporting bureaus and creditors to correct your report and stop your credit score from plummeting as a result.

Instructions

1

Purchase a copy of your credit report from each of the three major credit-reporting bureaus (Equifax, Experian and TransUnion). Check the report for errors. File a dispute form with each credit-reporting bureau to fix errors in your payment history. For example, if an account is reported as "delinquent" but is actually "paid in full," use the dispute form to fix the error.

2

Place a fraud alert on your credit reports if you suspect an unauthorized third party has opened accounts in your name. Contact one of the three credit bureaus to place the alert. The bureau you notify will then notify the two other bureaus. While you cannot restore a credit report overnight, the credit bureaus investigate claims of fraud as quickly as possible.

3

File a police report if you find fraudulent accounts on your credit report. Filing this report makes it easier to fix your credit after identity theft. Send one copy of your police report to your credit card company's fraud department, along with a dispute letter stating you are the victim of identity theft. Also forward one copy of your police report and dispute letter to each of the three credit bureaus.

4

Close your accounts. Open new password-protected credit accounts in place of your old ones. Your new accounts will appear on your credit report and reflect your current payment history.

5

Minimize your delinquency rate by paying your credit accounts on time. Pay above the minimum balance to maintain a low card-utilization rate, which is the rate at which a line of credit is used. Keep your balance within 30 percent of your line of credit to boost your credit score.