How to Change My Credit Rating

Your credit rating is a score used by financial lenders to assess how good a risk you are before they will offer you a loan. Your rating will affect whether you are approved for a mortgage or car loan as well as the interest rates you are offered on credit cards and other forms of credit. There is no quick fix for your credit rating; it will only change slowly over time. However, there are several steps you can take to change your credit rating in a positive way.

Instructions

1

Request a free copy of your credit report through the official Annual Credit Report website. Examine the report for any items you think are inaccurate and for items that are reducing your score. Order a report from each of the credit-rating bureaus, as they may show different items.

2

Write to the credit reporting agency about any items you want to dispute. Include a copy of your credit report with the item(s) in question circled and copies of documents that support your claim.

3

Calculate your debt to get a good look at all of your outstanding loans, credit card balances, and the interest you are paying each month. A high debt to income ratio will lower your credit rating. This list will also help you identify the debts you are paying the most interest on, so you can work to pay them off first.

4

Get all loans into good standing. This will require you to pay at least the minimum balance for a certain period of time. Call your creditor to find out the details for each loan as they will vary.

5

Make your payments on all bills, loans and credit cards on time, every month. Any late payments will reduce your credit rating while consistently paying on time will improve your credit rating.

6

Wait for negative items to be removed over time. According to the FTC, it generally takes seven years for a negative item to come off your report, while bankruptcy will remain on your report for ten years. Only time can remove these items.