How to Quickly Fix Your Credit Score

As soon as you apply for your first credit card, you start to build a credit history. Every time you apply for a new account, make a payment or cancel an open account, the financial institution reports this information to the credit reporting bureaus that collect a file on your history. Missing a few payments or defaulting on a loan will damage your credit score. However, you can take steps to get back on track and improve your rating.

Instructions

1

Order a copy of your credit report from TransUnion, Equifax and Experian. Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act, you can get a free copy of your credit report once a year, according to the Federal Trade Commission.

2

Review your credit report and circle any errors you find. Pay close attention to the credit history section.

3

Write a letter to the credit bureau that listed the inaccurate information stating you wish to dispute the item. Be as detailed as possible. Include a copy of your credit report with the error circled.

4

Mail the letter certified mail to the credit bureau. By law, the agency has 30 days to review the information and correct or remove inaccuracies.

5

Contact any companies you have an account with not listed on your credit report, such as a wireless provider or gas card. Ask them to report your payment history to the credit bureaus. Adding a positive credit history will improve your credit rating.

6

Verify the credit bureau completed an investigation on your dispute after 30 days. If the credit bureau makes any changes to your account, they must send you a copy of your updated credit report. If you do not receive information on your dispute within 45 days, contact the credit bureau directly for a follow up.

7

Create a budget to pay down your credit card debt. Write down all of your household expenses for the month, including mortgage payments, utilities, groceries and the minimum amount due on your credit cards. Subtract this total from your total monthly income to get your excess income for the month.

8

Pay the minimum amount due on every credit card by the due date.

9

Apply your excess income to a credit card with a high balance and continuing paying toward the credit card until you have no remaining balance.

10

Repeat Step 8 for every credit card you own with a balance until you have no rotating credit card debt. Reducing your overall debt will increase your credit score.