How do you clean up your credit?

One significant way to clean up bad credit is to make on-time payments consistently, according to MyFICO. A payment schedule or automated reminder tool helps. Checking a credit report to identify any errors and sources of low credit may allow for corrections.

Paying down debt balances as quickly as possible is another tactic, according to MyFICO. Debt-to-limit ratios are a key scoring factor, and paying down debts on accounts reduces these ratios. When someone believes a credit report has an error, it is important to write a formal letter to the credit reporting agency, according to the Federal Trade Commission.