How to Repair a Bad Credit Score Quickly

Having a bad credit score can make it very difficult to get a loan or credit card. A bad credit score can also dramatically increase the interest rates that you have to pay on your credit obligations. Fortunately, there are ways to repair your credit score quickly. Contrary to what many people believe, you don't have to pay anyone to repair your credit score. You can do the entire job by yourself. Once your credit score has increased, it will be easier to get a loan such as a mortgage, auto loan or personal loan with a lower interest rate.

Instructions

1

Request a copy of your credit report from AnnualCreditReport.com. On this website, you can get a free copy of your credit report from each of the three major credit reporting bureaus, Equifax, Experian and TransUnion, each year. Be sure to request your credit report from all three bureaus. Examine the credit reports for false information and out of date information that may be exacerbating your bad credit score.

2

Contact each of the three major credit reporting bureaus in writing to dispute the incorrect or outdated information on your credit report. Include a copy of your credit report with the errors circled in red. Also include any documents you may have to support your dispute, such as credit card statements and other account statements which clearly show your balance. Scan and print or photocopy all these documents after you've signed or marked them and store them in a safe place. You can also save files of scanned letters and credit documents on a CD or DVD for safe keeping. If you don't receive a response from the credit bureaus within a month, call them or write to them again.

3

Find out your credit score from Equifax, Experian or TransUnion. Your credit score is also available from the three major credit reporting bureaus on the AnnualCreditReport.com website. However, keep in mind that you will have to pay for this service.

4

Make a commitment to pay all of your bills on time from now on. Make a budget which includes all your monthly income and expenses. Eliminate any unnecessary expenses such as eating out, going to movies and shopping for items you don't need. You may also want to consider cancelling cell phone and satellite or cable television contracts to reduce your expenses.

5

Start working to reduce your debt. Your credit score is partly determined by the amount that you've borrowed on credit in proportion to your credit limits. So if you have borrowed 50% of your credit limit on your credit cards, you will have a lower score than if you'd only borrowed 15% of your credit limit. If you're near or over your limit on a credit card, pay that one down first. Paying off credit cards entirely can also help to repair a bad credit score quickly. However, do not close the credit card accounts, as this will have a negative effect on your credit score.