- 1). Obtain credit reports from each of the three main credit bureaus (Experian, Equifax and TransUnion). Find out what negative information they contain. You will need to treat erroneous and accurate black marks differently.
- 2). Identify any mistakes. According to Jane Bryant Quinn, author of "Making the Most of Your Money," you should send documentation to the credit bureaus disputing any errors in writing. If they accept your proof they should remove the errors.
- 3). If the credit bureaus refuse to remove the error from your file, ask them to attach your statement to your files. Your side of the story will become a part of your credit report until the dispute is solved.
- 4). Take care of true negative reports by paying off the bills. Ask your creditors to contact the credit bureaus and tell them your accounts are settled. If you cannot pay off a bill, try to negotiate a settlement or payment plan with your creditor.
- 5). Ask the credit bureaus to attach a note to your report explaining the reason for past problems. You have the right to explain your overdue accounts or bankruptcy in 100 words or less. For example, you may have had a serious accident or lost your job.
- 6). Request that the credit bureaus remove any information that has expired. They must remove negative reports after seven years and information on bankruptcy after 10 years.
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Build good credit by paying your bills on time.credit-card image by Igors Leonovs from Fotolia.com
Build better credit in the future by paying your bills on time. Strive to charge only what you can pay off at the end of each month or use your debit card and stay on a cash basis. Your money will buy more because you won't be paying costly interest charges. Becoming a responsible financial manager will improve your credit over the long run.
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