How to Fix Low Credit

Low credit looks bad when you apply for financing. Fix low credit and qualify for better loan rates. In some cases, a better credit score opens the door to certain occupations and decreased insurance premiums. There's no easy way to raise a bad credit score, and you shouldn't expect overnight success. This task requires patience and better financial habits.

Instructions

1

Reduce credit applications. Avoid a credit score drop by declining in-store applications for credit and by limiting your number of loan applications. Credit inquiries count against you on credit reports.

2

Repay old accounts. Set up a payment arrangement with creditors and work to pay off default accounts.

3

Keep tabs on your credit report. Periodically order your credit report and review it to catch problems such as reporting errors. Dispute mistakes by sending a letter to the credit bureaus. Obtain reports from AnnualCreditReport.com.

4

Establish wiser payment habits. On-time payments play a major role in credit scoring. Avoid late payments by sending funds several days before the due date--aim for a week before the due date.

5

Lower your debts. Even if you can't pay off your credit cards completely, aim to significantly reduce the balances to help fix a low credit score. Maxed-out accounts also take points off your credit rating.