How to Repair Damaged Credit Quickly

Repairing credit can be difficult after a job loss, bankruptcy or other financial setback. Tenacity and conscious money management are needed to get back on track. The FICO score is affected by payment history, amount owed, payment history length and new credit applications. There is no magic formula for rebuilding a FICO score, but there are some proven methods that will help rebuild your score in about a year.

Instructions

Building a Solid Credit History

1

Obtain your credit report for free by requesting it at AnnualCreditReport.com (see Resources section) or at 877-322-8228. Review the report, and notify the credit agency immediately of any errors.

2

Apply for a secured credit card to start building a credit history. Credit history determines 35 percent of the FICO score.

3

Bring any late payments current. Late payments diminish a score; being current raises it.

4

Make payments on time every month to build a solid credit history.

5

Pay down large balances first. Being maxed-out causes credit scores to slip. Debt-to-credit ratio is 30 percent of the FICO score.