How You Can Repair Your Bad Credit

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To repair bad credit, take out a small loan, make regular and consistent payments on the loan and remove any old information from a credit report. Gradually repair bad credit with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Reports & Credit Scores
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Video Transcript

I'm Roger Groh. Today we're talking about how you can repair your bad credit. Well, there are a few simple steps that you can take. Number one is take out another loan. Sounds strange, doesn't have to be a lot of money, a hundred dollars, two hundred dollars, and pay back that loan according to the loan document, using regular payments that you make on time. As long as their on time, the next time that you go to borrow money, you'll be able to say, "Oh yeah, my old history is my old history, but in the last two years, I've made regular payments on time." That will make any future lender feel more comfortable giving money to you and will significantly improve your credit. Number two is get the old stuff off the books. The number of years that a credit company can leave data about you on their books ranges from five to ten, depending upon the type of asset that was on there. Make sure that assets that are on there that are beyond that period are removed. You can go online and get a credit report yourself. Just type in free credit report. You get one free per year according to US law. Make sure that the data in there is accurate. If they have left in assets that are beyond the statutory period, five to ten years, write a letter and they'll remove it. And that will remove from the lenders point of view, the bad news that was associated with the past and will just leave the good news that's happened in the present. I'm Roger Groh and those are some of the steps that you can use to repair your bad credit.

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