How to clean up your credit history
Best Answer: This is how your score breaks down:
35%- payment history
30%- total debt outstanding
15%- length of time you've had credit
10%- types of credit
10%- inquiries and new credit
Now how you can help yourself is to:
1. Get added as an authorized user. If you have a close friend or family member that has excellent credit, see if they'll add you on their account. You don't need a card, for this is just for reporting purposes only. If you're able to be added, make sure that the credit card company reports that account on your credit.
2. Get a secured card. This is the easiest credit card that you can get, without having a credit check. These may be offered where you do your banking or at Bank of America & Wells Fargo, for starters. You would have to put up a deposit upfront to secure the same amount in a line of credit, but the deposit would collect interest while you're proving your credit worthy. If
possible, to increase the limit by adding to the deposit every 2 months or so, by doing that once the card does become unsecured, you'll keep that credit line and will have gotten the deposit back with interest. It looks good on a report when you have a high limit because it looks like you're trustworthy with a high limit. The key is to spend a small amount that can be paid off in full on time, every month. After a year of perfect payment history, the card should become unsecured.
Finally the monthly bills that you do have that you're paying regularly on like cell phone, car payment, etc. can be repoted to an agency called PRBC for positive credit. This is perfect if you're just starting out becuase certain things that you pay every month, may not show up on a report. Any payment that you pay can be reported in a scored report that can be used along with your credit reports. There's a lot that's covered in the website below, be sure to check it out.Source: answers.yahoo.com