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Step 1
Get your credit histories from all of the credit bureaus. The top three credit bureaus are Experian, Trans Union and Equifax. These companies are required by the government to give you a copy of your credit history.
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Step 2
Examine these reports for any mistakes that may have been made. Often, two entries are made for the same item. Or items may not be valid.
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Step 3
Challenge each erroneous item with a letter and documentation, if possible.
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Step 4
Pay off as many of your outstanding debts as possible. This is the toughest part but it is by far the most important. A huge basis of your FICO score is the ratio of amount of dollars borrowed versus the amount of dollars you have available.
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Step 5
A common mistake many people make when they try to repair their credit is getting rid of old credit cards. Don’t do this! As mentioned before, a large part of your score is calculated by the amount of dollars borrowed versus the amount you have available. You want to have as much available credit as possible to boost your score.
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Step 6
If your parents or family have good credit, you can piggyback off their credit score by having them add you as an additional user to their credit card. You will benefit instantly from this and your score will get a nice boost, too. Be careful with this tip, though, because lenders have become aware of it and are starting to crack down.
Comments
sneedc said
on 5/24/2009 These are great, specific ways to instantly recognize and improve our credit scores and clean up errors made by the top three companies submitting our scores! thanks! 5*
writedesign said
on 5/10/2009 Great article on improving credit ratings. 5*rec