Repairing your credit will boost your credit score. A credit score represents your credit worthiness. Begin establishing good credit and your score will begin to rise. As your credit information changes, your credit score will slowly increase.
Obtain Credit Report
Equifax, Experian and TransUnion each issue you a credit score based on the information provided from creditors. Compare all three reports. Contact the bureaus to dispute any inaccuracies.
Settle Old Debt
If you default on a loan or credit card, it will show in your credit report. To repair your credit, negotiate with the original creditor to make payment arrangements. Agree to pay the debt in exchange for removal from your credit report. Without a written agreement, the creditor can report the debt as paid, but the debt still will appear on your credit report.
Open New Lines of Credit
Obtain a credit card for people with bad credit or a secured credit card. Begin re-establishing your credit by paying the bills on-time. You also want to avoid charging the full balance available on the card. Within a month of timely payments, the credit card company will begin reporting to the credit bureaus.
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