How to Create a New Credit File Fast

If your credit history has taken some hits, starting over with a new credit file can seem like a good solution. However, it's not that easy to sweep old mistakes under the rug. And there's no way to create a completely new credit file, especially in a short time. However, this reality doesn't stop businesses from trying to sell a fast, easy solution to desperate consumers.

To start fresh and bring new life to a dinged credit record, there are some steps you can take to help the process. Cleaning up credit the right way takes time and money but can show results in as little as one month.

Instructions

1

Scan your credit report to find errors. A significant percentage of reports contain old entries that can lower a credit score, and credit bureaus are responsible for investigating mistakes. According to the FTC, "Both the credit reporting company and the information provider (that is, the person, company, or organization that provides information about you to a credit reporting company) are responsible for correcting inaccurate or incomplete information in your report." Taking care of these old mistakes can lift a credit score by a significant number of points.

2

Choose carefully which accounts you choose to pay off. Most old debts fall off a credit report within seven years. If a debt is very old and can't be taken care of immediately, paying in installments can start the clock once again. So tackle the debts that can be paid off the quickest.

3

Call the creditor and arrange to get a "paid in full" or "paid as agreed" notation on any newly cleared debts. Although your credit score may not change, a new lender may think twice about doing business with a customer who simply has "paid" notations. To them, this shows that the debtor couldn't pay the debt in full in the time allotted. Todd Ossenfort of Creditcards.com states, "Although the account will be marked paid, it will be not be marked paid-as-agreed, which is how you want any account that has a negative listing to be resolved. "

4

Add some new debt lines to your report and pay them in a timely manner. Ideally, payments on these new credit lines should take place before the payment due date, with new charges taking up less than 10 percent of available credit. Good avenues for new credit include a small installment bank loan, a store charge card or a secured credit card through a credit union or consumer bank.

5

Cultivate new money habits to avoid falling into the same debt trap. Cleaning up a credit report can be an arduous process, so be diligent and spend conservatively in the future.