How to Clean Up Credit History Legally

Landlords, employers and insurance companies are all checking your credit history. Consumers with less than perfect credit may be feeling the effects. Cleaning up credit imperfections won't happen overnight. However, reviewing your credit report, identifying the areas that need improvement and focusing on behavior changes will clean up credit over time. It's also important to review your credit file to safeguard against fraudulent activity.

Instructions

1

Order a copy of your credit report. The first step in cleaning up credit is determining what's dragging down your score. A free credit report can be obtained from Annual Credit Report (see Resource section). Review the report for inaccurate information, such as late payments, accounts you don't own, and other discrepancies.

2

Report inaccuracies to the credit bureaus. A dispute form is available at each credit bureau's website (Experian, Equifax and TransUnion). After you submit the form, each bureau will take up to 45 days to process your request.

3

Review areas that need improvement. For example, consumers who have a history of late payments need to focus on making timely payments. This factor makes up 35 percent of your total credit rating.

4

Settle collection and default issues. Accounts listed in collections or default are seriously hurting your credit. Contact the lender (or collections agency) and request a payment plan.

5

Pay down debt. The amount of debt you have accounts for 30 percent of your credit score. Keep credit card balances to 30 percent or less of the total available balance. Paying off debt obligations will help you boost your credit score.