The Best Way to Clear Credit Report

Clearing your credit report and removing derogatory remarks is a key way to boost your low credit score. High credit scores open the door to lower rates on auto loans and mortgages, and people with A+ credit typically qualify for lower rates on credit cards. Improving your credit history and maintaining a good report involves effort and a realistic plan. And while you can't reverse negative credit overnight, you can vastly fix your rating within a year--maybe sooner.

Instructions

1

Get rid of outstanding debt. Stop spending your money frivolously and use your extra income to eliminate credit card debts and other loans. If needed, find additional employment to generate extra cash to pay off debt.

2

Work with a credit counseling agency. Choose a non-profit agency to negotiate lower rates with your creditors and help you pay off your debts sooner.

3

Pay bills promptly. Late payments reduce your rating. Avoid late arrivals by submitting credit card and loan payments online, and by keeping a record of your due dates on a desk calender.

4

Stop applying for credit. Recognize the damage caused by excessive credit inquiries. These applications reduce your credit rating and make it difficult to obtain future credit. Turn down in-store credit card offers and shred pre-approved credit card offers.

5

Review your credit report regularly. Check your personal credit file annually to check for mistakes. Negative remarks from identity theft and reporting errors will damage your credit rating.

6

Dispute errors. Don't ignore reporting errors on your credit report. Submit a dispute letter to the credit bureaus to begin an investigation. Include the creditor's name and your reasons for disputing the entry in your letter.

7

Work with creditors to remove judgments. Pay off credit judgments and then ask the reporting creditor to take the negative remark off your credit reports. The creditor must submit a judgment satisfaction letter to the court.