How to Repair a Credit Score Quickly

When you are getting ready to apply for a loan or credit card, improving your credit score can help you qualify for a lower interest rate. This can go on to save you hundreds or even thousands of dollars in interest as you repay your debt. Although much of your credit history is based on long-term habits, there are a few things you can do to quickly repair your credit. Even with the fastest methods, however, it could take up to 60 days to see results.

Instructions

1

Order copies of all of your credit reports. If at least one year has passed since you last used the service, you can get them for free with no strings attached through AnnualCreditReport.com.

2

File an online dispute at each credit bureau for any errors you find on your credit reports. Errors might include accounts that do not take out, hard inquiries you did not initiate or missed payments listed when you actually paid on time.

3

Write to any creditor that has listed just one late payment for you and ask for a goodwill adjustment. Describe how you have been a long-time customer, have paid on time since then and would like your credit report changed to remove the late payment. It does not always work, but when it does it erases your past mistake.

4

Call each credit card company and ask for a credit limit increase. Part of your score is based on your credit utilization ratio, which is your statement balance divided by your credit limit. Increasing your limit will decrease your utilization and boost your credit score.

5

Pay down your credit card debt as much as possible. Rather than focusing entirely on the high-interest debt, spread out your efforts to try to reduce all of your credit card balances to no more than 30 percent of each card's limit. If you can get them below 10 percent, this is even best.

6

Use your credit cards lightly. Even if you pay down the balance after you get the bill, the statement balance is the one used for your utilization ratio.

7

Negotiate a settlement to pay off any collection accounts that appear on your credit report. As part of the agreement, insist that the collection agency remove the account from your credit report rather than just reporting it as paid.