Credit restoration is the process of removing negative account histories, and adding positive information, to credit reports. The result of these efforts is an increased credit score and an easier time obtaining credit, getting hired for a job or approved for an apartment lease.
There are several different techniques that someone can use to repair credit. The first is to request credit reports from the major credit bureaus, Experian, Trans Union and Equifax, and to review each entry for accuracy. It is not unusual for wrong information to appear on credit reports. Once erroneous information has been challenged, individuals should see their scores increase.
In some cases, it may be possible to remove accurate, but negative, information on reports. Many creditors are willing to work with consumers to settle old or outstanding debts. Once this happens, the creditor removes or updates the debtor's credit report listings.
Once negative information has been deleted from credit reports, a credit restoration plan will suggest the judicious opening of new credit accounts. When the consumer pays these accounts as agreed, the creditors report the on-time payments to the credit bureaus. Over time, the consumer builds up a strong credit history and score that makes it easier for him or her to enjoy the benefits of having good credit.