Tarnished or damaged credit is a financially and emotionally-taxing event in the lives of consumers, and it mars their payment history. Constituting 35% of the credit rating, payment history is the leading factor in the calculation of a borrower’s credit score. Therefore, it becomes imperative for debtors with a blemished credit history to find a way to boost their credit score. By pursuing one of the numerous available avenues for credit history repair, they can start rebuilding their credit and cleaning up their credit report.

To reconstruct a positive credit history, card holders should consider the following effective strategies for credit repair:

1. Cease using their credit cards

Consumers should tear up or boycott their credit cards until their debt is brought under control. They should also refrain from submitting additional applications for credit.

2. Dispute derogatory information in their credit report

Debtors should obtain a copy of their credit report, which documents their payment history, from the three main credit bureaus. If, upon reviewing their credit history, personal information, and amounts and dates of the enumerated debts, they find inaccuracies, outdated items or mistakes, they should dispute them immediately. One negative item can have a significant impact on their credit score. By reporting the error to the consumer reporting agency and/or the reporting credit agency and requesting that they correct the information, consumers can raise their credit score.

3. Get current on their delinquent accounts

Late payments negatively impact card holders’ credit scores. By paying off their existing debts and making timely payments, they will substantially improve their credit rating. To prove their renewed capacity to pay on time and establish a positive credit history, consumers may apply for secured credit. They should ensure that the lender reports to the three credit bureaus, so that prospective creditors will take note of their payment history. To speed up the repayment process, borrowers may wish to consider 1) selling their belongings, 2) consolidating their debts and/or 3) asking a friend or relative to co-sign on a credit card or small loan.

4. Negotiate a repayment plan with creditors

Another method of credit rating repair involves negotiating a payment agreement with creditors. By maintaining an open account and fulfilling their payment obligations, debtors will demonstrate that they are able to make regular payments. As a result, they will acquire a positive credit rating.

5. Solicit credit repair help

Legitimate organizations, such as the Consumer Credit Counseling Service, can assist borrowers, at little or no cost, in creating a repayment plan and improving their credit.

6. Enlist the help of a credit repair service

When it comes to credit repair, some consumers choose to go the solo route. Others, however, prefer to hire a credit repair service since they lack the patience, time, and or/expertise to do what is necessary to effectuate a credit history repair. Credit repair services can help consumers raise their credit scores dramatically and establish a positive credit history. Typically, it will perform the following tasks on behalf of card holders:

Dispute misleading, false, and negative marks on credit reports Provide debt management counseling Set up personal repayment plans, such as debt management plans (DMPs), that fit their clients’ budget and allows them to improve their credit report by paying down their debt through monthly payments.