How to Repair a Credit Score Fast

Being financially responsible involves properly budgeting your money and maintaining a good credit score. Nowadays, credit scores carry a lot of weight. Insurance companies and select employers use credit ratings to assess applicants. Also, if you don't have a satisfactory rating, getting a mortgage or auto loan can prove challenging. Even if your score is in the low 600s, there are fast and effective ways to reverse your current standing and establish a trustworthy rating.

Instructions

1

Request a free credit report. Every consumer can receive one free report a year from Annual Credit Report. Obtain a credit report via an on-line request form and view your credit history in minutes.

2

Identify errors. Mistakes or misinformation on your credit report lowers your FICO score. Carefully consider each entry to ensure accuracy. If you identify a mistake, contact the reporting creditor or the bureaus to investigate the mistake.

3

Increase income to pay off debts. High credit card balances also reduce credit scores. Rather than pay minimums, use savings to eliminate debt. Think of ways to create extra money such as obtaining a second job or offering a service such as babysitting, lawn cutting or selling items to generate money to get rid of debt.

4

Consider automatic payments. Late payments also destroy credit ratings. Sign up for automatic payments each month and reduce the risk of late payments. Creditors deduct your payment from your bank account.

5

Avoid collection accounts. Maintain open communication with your creditors and negotiate new payment due dates if you stumble upon financial problems. Ask creditors to consider a forbearance if you are unable to make payments altogether. Aim to avoid collection accounts and judgments.