How to Improve Your Credit Score Fast for Free

Restoring a poor credit score is essential to obtaining financing for a mortgage or vehicle loan. Some lenders will approve applicants with less than ideal credit, but these loans often come with higher finance charges and other fees. Credit scores can be repaired, allowing consumers to qualify for better rates.

Instructions

1

Aim to pay creditors. Missed and skipped payments are detrimental to your credit score. Recognize the importance of timely payments and resolve to submit your payments on time. Sign up for online banking and enroll in programs to automatically pay bills, or mail payments at least seven days before their due date to prevent a late arrival.

2

Live within your means. Maxing out credit limits or exceeding your limit also damages your credit score. Restore your FICO score by paying down debts. Prioritize money to pay off creditors and reducing debt to enhance your credit score.

3

Settle delinquent accounts. Use money from personal savings to pay off these debts, or contact the original creditor and set up a monthly payment arrangement.

4

Get a secured credit card, which help people establish or restore their credit rating. Contact a representative from a local bank or credit union and ask for an application.

5

Understand the impact of credit inquiries. Every request for credit appears on your credit report as an inquiry, and inquiries can reduce your credit score. Limit your number of credit applications to help increase your score and restore your rating.

6

Get your credit report. Consumers can get a free credit report once a year from any of three major reporting bureaus, as of 2009. Reporting mistakes are common, and one error can lower your FICO score. Order your report once or twice a year and dispute errors. Visit annualcreditreport.com to view or print your report online.

7

Increase your credit limit. Because maxed-out credit cards have a negative impact on your rating, request a credit increase if you're approaching your limit. This helps widen the gap between your balance and limit; and this provision is often reserved for people with a good payment history.