How to Clean up Your Credit in Five Easy Steps

Cleaning up your credit history may seem like a demanding task that requires great effort. True, you can't undo a bad credit history overnight, but in five simple steps, you can improve your credit score measurably and prove that you're able to manage credit. Never underestimate the significance of a good rating, especially if you are buying a home or car.

Instructions

1

Keep track of the information on your credit report. Don't rely on creditors to report correct information to the credit bureaus. Order your credit report once a year to confirm that they report valid information. Dispute inaccurate statements.

2

Remember to pay bills on time to avoid late fees and negative remarks which can impact your credit rating. Don't wait until the last minute to forward payments. This increases the risk of the payment arriving late.

3

Slash your debt. Gradually pay off your credit card balances to clean up your credit score. Mail in higher payments and do not put new charges on your cards.

4

Make a deal with creditors to clean up your report. Ask your creditors to reduce your minimum monthly payments if you are experiencing payment problems, and establish a plan to pay charge-offs or old delinquent accounts to help fix your credit.

5

Start over if you've been through bankruptcy. Living without credit after a bankruptcy makes it difficult to improve a bad credit score. Start fresh with a secured credit card (available from your bank) and rebuild your credit history.