How to Fix Low Credit

Low credit looks bad when you apply for financing. Fix low credit and qualify for better loan rates. In some cases, a better credit score opens the door to certain occupations and decreased insurance premiums. There's no easy way to raise a bad credit score, and you shouldn't expect overnight success. This task requires patience and better financial habits.

Instructions

1. Reduce credit applications. Avoid a credit score drop by declining in-store applications for credit and by limiting your number of loan applications. Credit inquiries count against you on credit reports.

2. Repay old accounts. Set up a payment arrangement with creditors and work to pay off default accounts.

3. Keep tabs on your credit report. Periodically order your credit report and review it to catch problems such as reporting errors. Dispute mistakes by sending a letter to the credit bureaus. Obtain reports from AnnualCreditReport.com.

4. Establish wiser payment habits. On-time payments play a major role in credit scoring. Avoid late payments by sending funds several days before the due date--aim for a week before the due date.

5. Lower your debts. Even if you can't pay off your credit cards completely, aim to significantly reduce the balances to help fix a low credit score. Maxed-out accounts also take points off your credit rating.

References

• FTC: Credit Repair
• MSN Money: Fix Credit in 72 Hours
• Annual Credit Report