First of all, it has to be pointed out that there are no easy, snap-of-the-finger solutions to this problem. Any institution or individual offering you to this kind of help may just be bluffing, or would result to unnecessary and impractical worse consequences. In fact, the Federal Trade Commission warns consumers of such promos or claims of erasing your bad credit history. They are nothing but scams, and falling for their claims could lead to more disastrous results than your bad credit history.
There are, however, some tips and ways to salvage and improve a bad credit history. One is by reducing the number of credit cards and / or accounts you have. You can do this by notifying your creditors of your intent to have them closed, and then reporting this action to the three credit bureaus.
Closing some of your credit accounts will reduce the temptation of further damaging your credit history by excessive purchasing. Moreover, having too many accounts would inevitably affect your credit score and can pose difficulties in applying for more needed and important credit accounts in the future. Go further and write your creditors a request letter to decrease the border of your credit accounts. This move is wise, because lenders always consider the remaining credit in your accounts. Yes, they check it even if you don’t owe anybody anything at the moment.
Of course, nothing beats paying any ensuing and future bills on time. Perpetually not paying on time puts more blemishes on your credit history and makes rebuilding your credit a more difficult feat. Be wary of bankruptcies. A single bankruptcy or lien could stick and stand out on your credit card for as long as ten years.
Another thing you can do is to apply for a secured credit card, which requires a specific amount in one of your accounts for the costs charged by the secured credit card.
Getting a secured credit card helps reestablish your credit report. Do avoid, however, any prepaid credit cards. As opposed to secured credit cards, prepaid cards are not under the credit bureaus, and so any transactions done with it will not aid or improve your credit history whatsoever.
When applying for loans or another credit card, ask a family member to co-sign it. This will help reestablish your credit.
Now, suppose there was a mistake. Suppose it was all a big mistake, and you haven’t done anything to ruin your credit history. What you should do then is to obtain a copy of your yearly report to catch any errors. In any case, you should be checking your credit report so you can avoid having a bad credit history in the first place.