How to Improve My Horrible Credit History

A horrible credit rating can trigger higher insurance premiums, and if applying for a loan, having a low rating often ends in a denial. Improving a horrible rating is doable. However, you shouldn't expect overnight success. You didn't acquire bad credit in one day and you can't repair bad credit in one day. But by adopting new habits and changing the way you manage debt, you can improve your credit history.

Instructions

1

Aim to pay bills early. Procrastination or waiting to pay your bills increases the risk of forgetting to pay on time. Pay credit card statements and other bills early to ensure an on-time arrival and to avoid late fees.

2

Lower your debt on credit cards. Stop using credit cards and pay more than your minimum each month to help bring down your debt. The amount you owe affects credit scoring, and owing a huge balance on credit cards can lower your score.

3

Get rid of collection accounts. Creditors will report collection accounts to the credit bureaus and this entry can stay on your report for seven years. Plan to pay off this debt and ask your creditors to delete the collection account after they receive payment.

4

Check report for signs of identity theft. Someone can steal your personal information and open an account in your name. Order your credit report yearly and check the report thoroughly for signs of fraudulent activity.

5

Refrain from opening new credit files. Every credit application submitted takes points off your credit score. Only apply for new credit accounts when necessary.