Rebuild Your Credit History By Taking These Measures

If you want to rebuild credit history, you will need to take positive proactive steps on your own behalf to improve your credit. In many cases, credit reports contain incorrect and invalid entries that require persistent effort to correct. You can also rebuild credit history by carefully managing your available credit and payment habits.

Review Your Credit Report

Almost every credit report has erroneous and incorrect entries. You are entitled to an annual free copy of your credit report. You are also entitled to a free copy of your report if you are turned down for credit or employment as a result of credit information provided to a potential lender or employer.

As you review your credit history report, take note of any errors that you find. Also take note of any positive credit information that is not included on your credit report.

Challenge Errors

Since most credit reports have errors, you can improve your credit history by challenging and having those errors removed. Write a letter to the credit reporting agency and outline exactly what is incorrect. Also include copies of any documentation that might support your position, including copies of settlement letters, bankruptcy discharge papers and copies of payment checks.

The credit reporting agency is required by law to investigate the allegations in 30 days by contacting the creditor. If the creditor does not provide validating evidence, then the entry must be corrected or removed and a copy of your corrected credit report must be provided to you.

Report Positive Credit Information

One of the ways to rebuild credit history is to provide positive credit information that has been omitted from your credit report. Many small businesses and utilities do not report to credit agencies. However, you can provide account information and evidence of positive credit on your own. Write a letter to the credit agency and include the account information and copies of payments.

Apply for a New Credit Card

As counter-intuitive as it seems, opening a new credit account can actually help you rebuild credit history provided you make your payments in a timely manner and do not go over your credit limit.

Credit cards are available for individuals with credit problems for both unsecured and secured credit cards. Unsecured credit cards may not have large or high credit lines, but over time, with responsible payments, credit limits will eventually be increased. Secured credit cards require providing a deposit the is usually held in a bank account by the issuing bank. In all other ways, secured cards are like unsecured cards and require regular monthly payments made on time and fees are applied for going over the credit limit or dishonored payments.


Repairing and rebuilding credit history can be accomplished through persistent monitoring of credit reports and reporting of positive credit that has not been included in a credit report. In addition to improving credit scores, credit history can be improved though the responsible use of new lines of credit and through making payments on time.

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