• Some people struggle financially as a result of mounting medical bills, loss of employment or poor money management. Financial struggles can force consumers to rely on credit cards, pay bills late or default on loans. Each of these actions reflects negatively on a credit report, and should be avoided if possible.
  
  

Inaccurate Information

• The first thing you should do is request a copy of your credit report and review the information. You can receive a free copy of your credit report from AnnualCreditReport.com. After reviewing the credit report, identify any information that is not accurate. If a creditor reported inaccurate information, contact the creditor directly to request that it be corrected. If the creditor refuses to correct the information, write a letter to the credit bureau disputing the inaccurate information. Keep copies of all correspondence between the creditor, the credit bureau and yourself.
  
  

Paying Off Debt

• If high balances on credit cards or unsecured loans are damaging your credit report, you need to focus on paying off the debt. Start by eliminating unnecessary items from your monthly budget and use those funds to pay off debts. You could also work a second job and use the additional income to pay off the debt faster. Any bonuses or lump sum payments your receive can be applied directly to the debt as well. By making debt elimination a priority, you will see your credit card and loan balances decrease and your credit report improve.
  
  

Timely Payments

• Paying bills on time starts improving your credit report right away. A series of timely payments counteracts a history of late payments. Companies who use your credit report to make hiring or credit decisions will weigh the more recent payments with a higher importance. After several months pass, the late payments will disappear, leaving only the timely payments.
  
  

Credit Repair Scams

• Many companies call themselves credit repair organizations and charge consumers large fees with the promise of cleaning up their credit report. Some of these companies scam consumers by taking their money and providing nothing in return. Before contracting with any organization, research the organization and contact the Better Business Bureau.