Your credit score is important, and having a low or negative score can prevent you from obtaining a mortgage loan, auto loan or credit card. Fortunately, there are several ways to clean every negative item off your credit report, and raise your score by 100 or more points. With a higher score, you’re able to acquire financing and obtain the best interest rate.
1.Obtain a copy of your credit report. Before you can clean negative remarks from your credit report, you’ll need to know your credit standing. Order a free copy of your personal credit report from Annual Credit Report.
2.Dispute credit reporting errors. After reviewing your report, circle unfamiliar accounts or reporting mistakes. Call your creditors to dispute an unfamiliar account. By law, they have to investigate all claims and correct inaccurate information.
3.Settle collection accounts. If you have a collection account, contact the original creditor or the collection agency, and set up a payment arrangement. Once you’ve paid the debt in full, ask the agency to remove the remark from your credit report.
4.Pay credit judgments. Judgments reduce your credit score. To clean negative items off your credit report, pay off credit judgments, or submit monthly payments.
5.Pay your bills on time. Creditors report late payments to the bureaus, and these remarks decrease your credit rating. Make every effort to pay your bills on time each month. If necessary, sign up for automatic bill-pay to avoid late payments.
6.Hire a credit repair agency. If you’ve filed bankruptc, or experienced a foreclosure or repossession, use a credit repair agency to clean up your credit report. Agencies contact past creditors on your behalf, and they work diligently to get negative remarks deleted from your report.