How to Repair Bad Credit and Raise Your FICO Score
Repair your bad credit and raise your FICO score to qualify for a house loan or get other financing. Credit scores carry a lot of weight when applying for credit and loans. And the better your score and credit habits, the easier it becomes to acquire an approval. Fixing scores involves improving your credit pattern and making better decisions.
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Instructions
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Pay by your due dates to avoid delinquencies. Creditors charge late fees for past due balances, and being more than 30 days behind on payments will lower your score. Always pay on time to increase your FICO score and maintain good credit.
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Carry a low debt balance. Going over your credit limit or keeping balances close to your limit reduces your score. Begin paying down credit cards and only use cards if you have money to pay balances in full each month.
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Decline offers for credit cards. Every credit application decreases your FICO score. Apply for loans and credit cards only if necessary.
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Pay old debts and collection accounts. Don't leave unpaid charge-offs and judgments on your credit report. Pay off these debts in full or begin sending installment payments to satisfy balances. Once paid, creditors will update your report to read "paid charge-off," or "paid judgment," which can help improve your credit rating.
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Remove items from your personal file. Don't leave inaccuracies on your credit report. Check your report from Annual Credit Report every 12 months and file an online dispute if creditors report wrong information or if you don't recognize credit accounts.
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