Methods of Cleaning a Credit Report

It's easy to ignore credit problems. But when the time comes to purchase a new car or finance a mortgage, a bad credit rating can justify a loan denial. Credit repair takes time; it can take several months to see any improvements. However, it's worth it to know you'll have a higher credit rating.

Instructions

1

View your report online. Order and view a copy of your free credit report from Annual Credit Report (see Resources below). Consumers are entitled to one free report a year through this agency. Regularly viewing your report helps you assess credit damage and problems.

2

Stop using credit cards. Don't close your credit card accounts; instead, store your credit cards away rather than carrying them with you. This will curb impulse buying.

3

Pay off existing debts. Send creditors more than the minimum payment; send as much as you can afford to reduce the balance quicker.

4

Create a budget and stick to it. Plan for all necessary expenses for food, housing, transportation, clothing, utilities and insurance. Eliminate personal luxuries such as shopping, dining out and vacations and put any money left after paying your necessary expenses toward reducing your debts.

5

Respect due dates. Late payments contribute to a reduced credit score. Stay on top of your due dates and pay all bills on time.