How to Restore Positive Information to Credit Bureau File

Positive information on your credit file helps you get mortgages, auto loans and credit cards. Consumers who hit a rough patch, due to layoffs or a drop in income, will find it hard to keep up with payments to creditors. Bad credit isn't permanent and you can restore positive information to your personal credit file.

Instructions

1

View a copy of your credit report yearly. Go to AnnualCreditReport.com and order a free credit report once a year. Checking your report is key to detecting mistakes early.

2

Approach creditors and have them remove misinformation. Creditors can send wrong information about you to the bureaus. Dispute errors such as unfamiliar accounts and request immediate removal to help restore your positive rating.

3

Face collection accounts and old debt. Schedule installment payments with old creditors to pay off delinquencies and collection accounts. Negotiate a debt settlement in exchange for the creditor removing the negative remark from your credit file.

4

Remove a high credit card balance. Pay off or pay down your credit card balances. Creditors will update your account balance once you're reduced the debt and low debts help improve your credit rating. Keep balances below 30 percent of the credit limit.

5

Add months of positive payments. Creditors report late or missed payments to the bureaus and these entries lower your rating. Start paying bills on time. Creditors will report the account as paid or current, and this positive information helps your credit rating.