If you have fallen behind on your bills but are now ready and able to start paying again then you should know how re-aging can benefit you. Through re-aging, your credit history is re-written and you are given a fresh start on that account. This can dramaticaly improve your credit score. In 2000 the Federal Financial Institutions Examination Council (FFIEC) clarified guidelines on re-aging accounts for delinquent borrowers.
To be considered for re-aging:
1) The borrower should demonstrate a renewed willingness to repay
2) The account should be at least nine months old
3) The borrower should make at least three consecutive minimum monthly payments
4) A creditor can only re-age an account once every twelve months or twice every five years
The FFIEC states among other things that the use of re-aging is “acceptable when it is based on a renewed willingness and ability to repay the loan”. Contact your creditor and let them know the trouble that you have had (i.e. unexpected illness, unemployment, or some other crisis) and that you are now back on your feet and willing and able to start making payments. Ask for a confirmation in writing from them that states that they will re-age your account once you have made three on time payments. Creditors are not required to re-age accounts but most major institutions have a policy on re-aging.
Here is the link to the FFEIC June 12, 2000 Final Notice