And you won't know whether the big three credit reporting companies hold you in good standing until you've checked out their reports. Mistakes are common. They are easy to correct, but they must be spotted to be fixed. Although untimely debt repayments don't vanish from your credit report for seven years, lenders will be more receptive if you can show that you've paid your bills on time for at least two years. If blemishes remain or your financial woes are recent, you'll need to explain them to a lender in writing.
Lenders recognize legitimate reasons for credit problems, such as divorce, unemployment or illness.
They will work with you, if you explain your situation. To get a copy of your credit history, contact one of the three main credit reporting companies . When you receive your report, carefully check that all information is correct. If you do spot an error, send letters to the credit reporting companies. Law requires them to check the accuracy of their information and respond to your complaint within a reasonable time, usually 30 days.