How to Erase Bad Credit From a Credit File

Bad credit on your credit file reduces your credit rating, and after checking your credit file, lenders may not approve your credit application. It takes time to remove negative items from your credit file and repair a low credit rating. But the sooner you begin fixing your bad credit history, the sooner you can get a mortgage, auto loan or other type of financing with a low interest rate and better terms.

Instructions

1

Assess the negative items on your credit file. Annual Credit Report provides every consumer with one free report each year. Review your report and circle negative items on your credit file such as unfamiliar accounts, collection accounts and late payments.

2

Reverse late payment habits. You can't remove late payments once a lender reports this information to the credit bureaus. Start paying your bills by the due date to raise your credit rating and ultimately improve your relationship with your creditors.

3

Pay down maxed out credit cards. Exceeding your credit limit or having credit card balances close to your limit hurts your credit file. Improve your credit standing by increasing your available credit on credit cards. Pay more than your minimum and stop using credit cards to bring down your balances.

4

Write the credit bureaus to investigate unfamiliar accounts. It's possible for someone to steal your personal information and open fraudulent accounts in your name. Dispute unrecognizable accounts or information on your credit report.

5

Work with creditors to satisfy collection items and negotiate the removal of these items from your credit report. Like late payments and high debts, collection items on your credit file damage your credit rating. Pay off these old delinquent accounts and then ask creditors to delete the collection from your file.