How do I Create a Good Credit Score From Bad Credit?

Creating a good credit score is important. So many things in your life can depend upon it. Every time you apply for credit your credit score gets checked. A bad credit score not only means you may get declined for credit, it can also affect the interest rates you have to pay, the type of deal you can get on a cell phone and even whether you get a place to rent.

If you've got bad credit your credit score is likely to be low, but, with some time and dedication you can create a good credit score from bad credit.

Instructions

1

Get your credit history report from AnnualCreditReport.com. It's free once a year, easy to get and you can view it instantly. You need your credit report so you can see where you have bad credit; then you can start to create a good credit score.

2

Review your credit report carefully. Check for errors or inaccurate information before you check for bad credit. If you find errors, write down the details and contact the lender and credit reference bureau. Tell them about the errors in writing and let them know the correct information. Your credit report should be corrected in about 30 days and is the quickest way to create a good credit score.

3

Check the credit report for areas with bad credit. This is likely to have occurred if you have missed or late payments. You need to rectify missed or late payments in order to create a good credit score.

4

Pay any late or missed payments to your lenders as soon as you can. Ensure you maintain your payments in the future. Lenders usually update your credit report monthly, so once you have made your payments and your accounts are up to date, your bad credit will be removed and your credit score will improve.