Keeping credit in good standing is the ultimate goal when first obtaining and building a credit history.  Unfortunately, as life progresses things come up and credit can get damaged as fast as it was obtained.  In these situations it is important to fix the problem as soon as you possibly can and get your credit score back on track.  Below are some tips on how to fix poor credit damaged by unexpected financial emergencies.

First, obtain a copy of your credit report.  You can’t fix problems that you don’t know exist.  A complete copy of your credit report can highlight the areas with your credit that need to be worked on and can also show you if there have been any errors made on the report.  A copy of your credit report is easy to obtain and available through a number of different reputable websites.  Your bank or current credit card company may also have a service that can provide you with a copy at no or low cost to you.

After you have received and reviewed your credit report it is time to take action.  If you have unpaid debts on your credit report that have not yet been resolved, now is the time to start speaking with some of the creditors to see if you can work out a payment plan that works with your current income.  In return for satisfying the debt, ask your creditors if they would be willing to update your credit status on your report to show that the debts have been paid.

Another way to gradually boost your credit score is by adding some positive credit to your credit report, instead of it just highlighting all of the negatives.  This can be done by contacting your creditors that are in good standing and asking them to submit your credit information to the credit bureau.  The release of information may have to be made formally with your creditor.  If your creditor agrees to the release of information, you can then contact the credit bureau and have them call the creditors you provide them with for your positive credit history.  It may seem like a difficult or lengthy process but the fact of the matter is, by adding some positive highlights to all the negative creditors see, they may be able to gain a better picture of who you are a borrower.

Finally, if you cannot afford to “fix” your credit by repaying past debts, it is important to note that all hope is not lost.  Generally, past and inactive negative credit is removed from a credit report in approximately seven to ten years.  As long as you are not continuing to acquire new debt and you keep the credit accounts that you do have in good standing, you should eventually be able to start off again with a clean credit slate.  But remember, this is a waiting game and clearing your credit this way does take a significant amount of time.  If you can at all afford to rectify even one or two of your past negative credit issues, it may be worth it while you wait for the others to fall off your report.

Elizabeth Roque is an in-house writer for Franklin Debt Relief. She presents information about debt relief programs, credit card debt relief and getting out of debt on a variety of financial sites online.

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