How do I Improve the Worst Credit Score?

There may be several reasons why your credit score is terrible. Missed or late payments are the main cause of a poor credit score. Your score also worsens if you exceed your credit limit. Every month lenders report your payment history to credit reference bureaus and your score is adjusted. Improving the worst credit score requires time and effort, but it's still achievable.

Instructions

1

Get your free credit report from AnnualCreditReport.com. The online procedure is simple and takes less than 20 minutes. You can view the report instantly. It doesn't show your credit score, but you will be able to see problem areas of the report that need fixed. Attending to these issues will result in an improved credit score.

2

Check your credit report carefully for errors and note them down. You will need to write to the credit reporting bureau and the lender to have inaccuracies fixed. The Federal Trade Commission has good advice at ftc.gov/ about correcting credit report errors. As soon as errors are rectified your credit score begins improving.

3

Review each line of credit on your report. Your payment history is next to each lender's name. Identify missed or late payments and note the amount needed to bring the accounts up to date. Arrange to pay the overdue amounts as soon as possible. Payments will be recorded on your credit file and improve your credit score.

4

Check if you have exceeded your limit on credit cards. If you have, make an immediate payment greater than the amount exceeded so you are back within your limit. Stay within your limit going forward to improve your credit score.

5

Analyze each credit card entry on your report and check the margins of available credit. Cards close to their limit get flagged by lenders. Keeping your credit card balances under about 60 percent of their limit improves your credit score.

6

Pay your contract cell phone bill on time. If you have a contract phone and you pay late, it is reported to the credit reference bureaus and affects your credit score. No report is sent if you pay on time.