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Step 1
Get a copy of your credit report and look through the accounts that are in bad standing. You can dispute accounts that may have the wrong information such as late payments or the date an account was opened. One way to dispute is by sending a letter to each of the three credit bureaus (Experian, Equifax and TransUnion). You can also go to the annual credit report website (see Resources) to obtain a copy of your credit report and send in your disputes. You will be receive an updated version of your credit report after 30 days of the dispute. If the bad credit wasn't removed, then dispute it again. You may have to send in documentation to support your claim.
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Step 2
Pay off your debts. Begin by first paying off the debts that have the highest interest rates. If you cannot pay off the debt in one lump sum, then pay off more than what is asked for on each statement. This is highly beneficial for raising your credit score.
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Step 3
Pay bills on time. Do not pay more than 30 days late or it will count against you and lower your credit score. By paying your debts on time every time, you will begin to see your credit score rise.
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Step 4
Avoid opening new accounts. You want to focus on the accounts that are active rather than opening new ones. Opening new accounts will hurt your credit.
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Step 5
Stop spending. If you can stop charging on your credit cards, you can gauge how much your monthly payment will be and you will avoid surprises at the end of the month. If you must charge on the credit cards, be sure to budget yourself and pay off the amount charged when you receive your statement. Even though you may use your credit cards, make sure to pay off what you charged along with a percentage of what is already on the account in order to help fix your credit and bring up your credit score.
