Begin by pulling all three credit reports and verifying every detail for accuracy. Dispute any incorrect balances, dates, or statuses since errors are common. Next, contact the creditor or collection agency to negotiate a settlement or payment plan, ideally requesting written confirmation of updated reporting. Bring all accounts current before opening anything new. Add a secured credit card or credit builder loan to rebuild positive history. Keep utilization below 30 percent and never miss a payment. Over six to twelve months, consistent on time payments and lower balances steadily improve scores, reduce perceived risk, and restore financial credibility lenders rely on.