How to Improve Your Credit Score By Repairing Bad Credit

Bad credit can ruin any chances of getting loans, lines of credit, and any more, even opening a checking account. Learn how to repair credit with just a few easy steps.

Instructions

Difficulty: Easy

1. To get started, you will need to get a copy of your credit report to see exactly what is causing a bad credit score. There are many ways to get a free credit report, simply do an online search on 'free credit report'.
2. Once you have your report, look closely for any false information. Many times reporting companies will report bad credit, and fail to report pay-offs and settlements. If you find that there are any errors, start by calling the company directly, the phone number should be on the report and ask them to correct the problem. Then submit a written statement to the credit agency informing them of the error and ask that an explanation be included in the report.
3. The next step is to go to your local bank and acquire a secured credit card. Here you will give them $200-$300 and they provide you with a card with a limit matching your deposit. Once this is done, keep all payments current and do not go over your limit. This will slowly, but steadily bring your credit score up and will show your current situation is stable.
4. The next step is to get a small loan, either through a company that specializes in bad credit (direct link to company with this type of financing below, under the resources heading) or with a cosigner to assist you in obtaining a loan. When you receive the funds, put them directly into an account that will be set up for automatic drafts out of this account to pay the loan back. This will keep your payments secure and you won't miss the money this way.
5. For more information, visit the link provided below, titled 'build your credit fast', under the Resources Heading. You will also find a link to companies offering bad credit loans and credit cards to help you get started to better credit.