How to Fix My Credit and Make My Credit Better

Fix your credit score.

The consequences of a bad credit history include higher interest rates on credit cards and loan denials. Some employers will not hire you with a low credit score. You can reverse or fix your low credit score. This requires patience and you have to learn how to manage debt better. Once you outline a plan to improve your low credit score and stick with this plan, your credit score will improve and and you will be on your way towards better credit.

Instructions

1. Repair your credit history or increase your score with on-time payments to your creditors. Mail payments or submit payments online days prior to the due date.

2. Create a plan to become debt-free. Limit credit card use and think of a way to reduce or eliminate your balances. Getting rid of credit card debt and other loans is a quick way to boost a low FICO score. Pay more than your minimum payments on credit cards and devote extra money every pay period to debt repayment. You may need to find a second job to increase your present income.

3. Analyze your personal credit report at lease once a year from the three credit bureaus (Experian, TransUnion and Equifax). Challenge errors or mistakes in your reports.

4. Get rid of collection accounts. Stop ignoring collection and delinquent accounts and work with creditors to repay these past due balances. Set up a payment plan. Ask creditors to remove collection remarks from your credit report once you have paid the balance.

References

• MyFico: Improving Your FICO Score
• Federal Reserve: 5 Tips for Improving Credit Score

Resources

• Equifax
• TransUnion
• Experian