How to Correct a Credit History

Your credit score is more than just a number. Lenders use this number to evaluate your credit history. Without this number, they can't assess whether you're a good candidate for a loan or credit card. A horrible payment history or a bankruptcy can result in a negative rating. But regardless of your past mistakes, you can correct your credit history and acquire a higher score.

Instructions

1

Organize documents. Be aware of your payment due dates and know the location of your credit card and bill statements. Create a file specifically for bills, and jot down your due dates on a calender.

2

Create extra income. Think of ways to boost your present income if lack of money impedes your efforts to pay your bills. Talk to your employer about a raise, or put your interests and talents to good use and start a business.

3

Eliminate credit card debt. Erase your outstanding debts completely to raise your credit score. Rather than pay only the minimum due, get into a habit of paying off balances each month or doubling your payments.

4

Stop spending. Only purchase items if you can afford to use cash. Maxing out credit cards or keeping card balances near your limit lowers your credit score. Curtail credit card use to help maintain a lower balance and a higher credit rating.

5

Change payment habits. Promptly pay your credit card and loan bills to maintain a satisfactory credit score.

6

Don't apply for new accounts. Each inquiry reported to the credit bureaus decreases your credit score. Postpone applying for new lines of credit until your credit score improves. And from then on, only apply for credit when necessary.