How to Fix a Credit Score

If your credit score is low, there are a number of steps you can take to fix it. Most actions you can take will require some time to show up on your credit report, however, so you should not expect to fix your score in a few days.

Instructions

Difficulty: Easy

Raise Your Credit Score

1. Pay off as much of your outstanding credit as possible and avoid charging any more purchases. Outstanding balances can drag your credit score down, so an easy fix is eliminating them. While you may not be able to pay off very much of your debt, even a small increase in your monthly payment can make a difference.
2. Avoid closing unused accounts. While this tactic may reduce your temptation to use more credit, closing accounts can eliminate part of your credit history, as well as reduce your debt to available credit ratio--both of which increase your credit score.
3. Review your credit reports from each of the three credit reporting agencies (Equifax, Experian and TransUnion) and dispute any errors you find (see Resources below). Each company maintains their own dispute website and you may need to dispute errors with each agency individually. You should check your credit report regularly to catch errors or fraud as early as possible.
4. Consult a credit counseling agency if your credit score is very poor. They can help you consolidate debt and negotiate lower payments and interest. Credit counselors can also provide you with financial education to help you maintain your raised score.
5. Improve your financial habits that lowered your credit score in the first place. Create a personal finance plan that meets your needs and helps you eliminate debt. Curb your spending habits to help yourself live within a budget.

Tips & Warnings

• If you need any recent fixes you've made to your credit to show up on a credit check, look for a lender that uses Rapid Rescoring. Rapid Rescoring can include payments made as recently as 72 hours before the check.
• The best ways to make sure that your credit score is high is to keep your balances low, pay your bills in full and on time and to open new lines of credit only when you need them.
• It can take two months for improvements to your credit score to take effect.
• Don't approach improving your credit score as a quick fix--try looking at it as something to be raised and maintained for the long term.