How to Fix Terrible Credit

You've made mistakes. Maybe you have been irresponsible with credit cards, or perhaps you were forced to declare bankruptcy. The good news is that you can fix terrible credit; the bad news is that it takes time and tenacity. There are numerous resources available to consumers whose bad credit is preventing them from living a normal life, but to fix terrible credit, you have to be committed to changing your financial habits and repairing the damage to your credit history.

Instructions

1

Request copies of your credit report from all credit bureaus. It is impossible to fix terrible credit if you are unfamiliar with the damage. Experian, TransUnion and Equifax all allow consumers to obtain free copies of their credit reports once or twice per year.

2

Make a list of all your creditors. Even if you do not believe a particular item on your credit report is valid, write down that creditor's contact information.

3

Dispute inaccurate data. Twenty-nine percent of all consumers have some sort of inaccuracy on their credit reports that has contributed to a difference of 50 points or more in their overall scores, according to the Electronic Privacy Information Center.

4

Commit to financial responsibility. To fix terrible credit, you must not incur any further negative items on your credit report or they will set you back. This might mean canceling credit cards or seeing a financial counselor.

5

Request payment plans from creditors. You might want to start with the lender to whom you owe the least so you can enjoy the satisfaction of quickly paying off the debt; or you might want to tackle the greatest debt first. Let creditors know you are interested in starting a payment schedule.

6

Accelerate payment plans. The faster you pay off debts, the faster you will fix terrible credit. Many consumers sell items they no longer need or move into a less expensive home.

7

Monitor your credit score. You don't have to pay for a service to do this; instead, order your credit report on a regular basis. Keep track of disputed items and debts you have satisfied.