Business & Finance Personal Finance

How to Clean Up Bad Credit From the Past

    • 1). Determine the extent of your past mistakes with a free credit report. You are entitled to a free yearly credit report, available from AnnualCreditReport.com, where you can order and view reports from all three bureaus online. Closely examine your credit history to see which areas need improvement.

    • 2). Pay old medical bills and other collection accounts. Non-payment of medical bills, cellular phone bills and utilities can leave a blemish on your credit report. Call old creditors and ask for a pay-off balance. Talk with an accounts manager to see if your credit report can be updated after you pay back the money.

    • 3). Arrange to settle all outstanding judgments. Credit judgments also tarnish credit scores. Make monthly payments until you pay off these account. Ask your creditor to submit a letter of satisfaction to the court system that issued the judgment.

    • 4). Pay your credit cards and other bills on time moving forward. Gradually reverse a bad payment history with on-time payments. Use the Internet to send your monthly payments or mail checks a week before their due dates.

    • 5). Fix your credit, after a bankruptcy, by getting a secured credit card and making payments on time. Obtain a secured credit card from a bank or credit union. Inquire about fees and deposits before submitting an application.

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