How to Rebuild Bad Credit Easily

Individuals with bad credit understand the disadvantages of having a low credit score. Loan application denials, higher interest rates and in some cases, higher insurance premiums all result from bad credit. But there are methods to help you rebuild your credit easily. Whether you acquire a low credit score from bad credit habits or a serious situation like a bankruptcy, you can fix your credit history and maintain a high score.

Instructions

1

Aim to pay your creditors early to boost a low score. Each late payment shaves points off your FICO score, and habitual late payments gradually results in a low credit rating. Reverse bad credit easily by making sure payments arrive on time. Consider automated withdrawals from your bank account or pay online.

2

Use your credit cards at least once a month. Inactive credit accounts do not help your credit score. If trying to rebuild your credit, pull out your credit cards and make a small purchase. This keeps your account active, and creditors are likely to update your credit report.

3

Get rid of debt. Pay off new charges in full every month to maintain a manageable debt loan. Having available credit on your credit cards can help improve your bad credit rating.

4

Erase collection accounts from your credit file. Open the doors of communication with past creditors of delinquent accounts and work to settle these accounts. Send weekly or monthly payments until you pay off the account. Request removal of the collection account from your report upon repayment.

5

Fix credit report mistakes. Add points to your credit file and reverse bad credit by disputing errors that appear on your report. Ignoring errors can lower your rating, and make it difficult for you to get financing. Get reports from Annual Credit Report.