Quickest Way to Repair Credit Legally

Credit reports play a large role in the financial life of consumers. Credit reports provide repayment history for a consumer's credit accounts, including mortgages, car loans, and department store and bank credit cards. A consumer's credit score is used in loan decisions and by the federal government in granting security clearances. Negative information can ruin a consumer's financial opportunities and job prospects. There are a few steps you can take to legally repair poor credit.

Timely Repayment

You must repay credit obligations on time. The negative and adverse credit history section reports nonpayment or slow payment of credit obligations. Start paying your obligations on time each month, by arranging affordable payments with each creditor or by consolidating your debts through a reputable debt consolidation program. As you repay on time, you'll build a positive credit record with a timely repayment history.

Negotiate

Negotiate repayment of liens or judgments and request that the status of each obligation be reported as "in repayment" by the major credit bureaus. Credit reports contain a public records section that lists all judgments or tax liens against a consumer for debt nonpayment. Call the tax authority or judgment creditor and ask to begin making monthly payments in exchange for removal of the judgment or lien from your credit record.

Dispute

Dispute inaccurate information, which can distort your credit record, by following the instructions on the website of the three national credit bureaus. The three bureaus--Trans Union, Equifax and Experian--are mandated by law to investigate inaccurate and erroneous information in a consumer's credit record. Visit the website of each bureau to request your credit record and begin the dispute process. The credit bureaus must delete inaccurate and erroneous credit history.

Personal Statement

Consumers have a legal right to append a statement of up to 100 words to a credit report. If there is a reason for negative and adverse information in your report, you can explain it using a personal statement. This statement can explain negative information to companies making an inquiry about a consumer's credit. Creditors may choose to ignore the negative portion of the credit report that's explained in the personal statement.