How to Repair a Negative Credit History
- 1). Review your credit file. Get your credit report and examine each entry to review creditor remarks. Look for collection accounts and judgments, and do a thorough check to look for inaccurate information or unfamiliar accounts. Obtain reports from Annual Credit Report.
- 2). Speak with creditors. Rather than ignore collections and judgments, which can stay on your file for seven years, make plans to pay off these debts and fix your credit history. Contact your former creditors to see if they'll settle for a lesser payment in exchange for a credit report update, or send smaller monthly payments until you've paid off the debt.
- 3). Do not make late payments. Fix your credit history and maintain a relatively good rating with on-time payments. Being 30 days or more late on a credit card or loan lowers your rating and makes it harder to acquire financing.
- 4). Manage your credit card balances. Acquiring several credit cards and maxing out these accounts decreases your credit rating. Maintain one or two credit cards for emergencies. Pay off high balances, and get into the habit of paying off new charges immediately.
- 5). Fix the after effects of a bankruptcy. Acquire a secured credit card shortly after your discharge to begin restoring your negative credit history. Banks and credit unions offer these types of credit. If you gave up your car during bankruptcy, visit a dealership that offers bad credit auto loans and finance an inexpensive vehicle. Paying your secured credit card and auto loan on time helps repair a low score.
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