Delinquent accounts, charged offs, credit inquiries - all these can negatively affect your credit report. There are companies which would promise to improve your score against payment of fees, but usually you can do it yourself as well with little patience and caution. But before discussing on the methods of fixing the Credit Report (CR) you may remember that there is no shortcut towards improving your credit score overnight. Each negative entry would take its time to fall off from the report but efforts taken towards its betterment can help improving your stand even during this time.

First, you must pull your credit report from all the three credit bureaus. As a consumer you’re entitled to receive a free credit report from all the three bureaus once in a year. Check the reports to compare the accurateness of the information. If you find any misinformation, you may dispute it with the Credit Bureaus (CBs) to take it off your report. Lesser the quantity of inaccurate information, better will be your score.

Anyway, following are the ways to repair your credit history.

Paying off debts wisely

You need to be wise at paying off your debts. While staying current on your mortgage and auto loan is important, paying off the credit card debts can help in improving your score faster. Keeping the balance to as low as 30% of the credit limit can actually help in accelerating your score.

Reporting correct limits of the cards

It’s true that credit score gets affected by the credit card limits reported to the agency. Lower and incorrect limits can depress your score. Hence, you may monitor your report to check that the card limits are getting reported correctly.

Older the account, the better it is for your score

Your credit score also depends upon the length of your payment history. The creditors like to see old accounts at good standing. Also, too many accounts opened within a short span of time would lower your credit score.

Avoid maxing out your credit cards

Try and avoid using your cards to their limits. Maxed out credit cards present a bad picture to the creditors and therefore are detrimental to your score. Ideally, you may limit your expenses on a card upto 30% of the credit line.

Dispute old entries

A negative entry should fall off your report after 7 years. Keep a watch on those entries. If they are not taken off by the credit reporting agency after the seven years period you may then need to dispute and get it corrected. Erasing old accounts can significantly boost your score.

Further, if you have been a good customer then you may request the bank to remove one late payment from the history. Remember that 30-day and 60-day delinquencies might not affect your score if you become current again but once you are 90 days late, it would stay on the report for seven years.

Our credit score is an important determinant of our credit worthiness. Hence, special care should be taken to keep the credit report unblemished. If you have poor score, you’d be paying more for auto and mortgage loans or you may even find it hard to qualify for such loans. Therefore, try not to be careless with your credit cards and other bills, and learn to live within your means.