Things You'll Need:
- Your Credit Report
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Step 1
You will need to access your credit report. You can find many resources online that will provide your credit file for free, and you can't effectively fix bad credit without having this information.
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Step 2
Take a look at your current credit cards and figure out what your debt ratio is. This is your balance as it relates to your credit limit. For example, if you have a credit card with a $10,000 credit limit and you currently have a $5,000 balance - that's a 50% debt ratio. Ideally you want your debt ratio to be below 35% for each card. You can fix bad credit just by transferring balances or paying off some of this debt.
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Step 3
Whether or not you pay your bills on time has the biggest effect on your credit score. If you have a habit of making late payments, set up automatic bill pay online. You'll quickly see a small improvement in your score just by changing your behavior to fix bad credit.
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Step 4
Analyze your credit report for any errors that don't belong there. Don't sweat the small stuff, such as a misspelling of a previous street address, but look for items that might be hurting your score. One credit report can list different information than the others, so be sure to closely review all 3 credit reports.
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Step 5
Keep your accounts open! Many people recommend closing credit cards, but that will not fix bad credit. A big part of your credit score is based upon your credit history. Aged accounts are good.
