How Can I Raise My Credit Score and Erase My Bad Credit?

A credit score affects your ability to purchase a home, vehicle and secure a job. Credit reports track your credit accounts and if you've made timely payments in the past. It also keeps track of bankruptcy information. If you're struggling with a low credit score, correcting inaccuracies and making simple changes can help you boost your credit score.

Instructions

1

Order a free credit report. Every 12 months you can order a free credit report from the three major credit bureaus, including Equifax, Experian and TransUnion (See Resources). When ordering your credit report, be ready to answer some detailed questions. For example, a credit bureau might ask you to verify your monthly car payment (right down to the penny) before giving your access to the report.

2

Review the report for errors. Errors can seriously drag down your credit score. After you've printed out your credit reports, review each credit account for accuracy. Look for inaccurate reports of late payments. Also, look for suspicious accounts. At the end of the credit report, there will be a section that lists bankruptcy and court settlements. Look for inaccurate information in this section.

3

Correct credit report errors. After you've identified inaccurate information, contact the credit bureau that is reporting the errors with a letter disputing the inaccuracy. The Federal Trade Commission (FTC) recommends including your legal name, current address and explanation of dispute in the letter as well as supporting documentation. For example, if a company is reporting an inaccurate late payment, include a bank statement copy that proves when the check was cashed.

4

File a police report. If there is fraudulent activity under your credit report, file a police report right away. This will help you clear up inaccuracies with the credit bureaus. After the police report has been filed, place a fraud alert on your account. This needs to be done with each credit bureau individually. Call them directly to initiate the process. A fraud alert makes it difficult for someone else to access your credit.

5

Ask for a correction letter. After the credit bureau has approved your dispute claim, ask that a correction letter be sent. If you request it, credit bureaus are required to send a letter to anyone who has pulled your credit within the last six months, according to the FTC.