Credit Repair Process

The credit repair process takes times, and this entails changing bad habits and understanding how credit scoring works. You don't have to pay a professional credit repair agency to fix your low credit score. Although there is no easy fix to repair damaged credit, there are effective ways to raise your score on your own.

Instructions

1

Review the information on your credit report. Disputing wrong entries on your credit report can help increase your credit score. Yearly reports are available from Annual Credit Reports, and you're eligible for one free report each year.

2

Use cash. High credit card balances will hurt your credit score. Resolve to pay down debts by using money from personal savings or paying double or triple your minimum payment until the balance disappears. Once you've cleared your debt, start using cash for purchases and always pay off debt charges with each billing cycle.

3

Avoid past due accounts. Pay your credit cards, mortgage, auto loan and other types of creditors on time to keep your accounts in good standing and to maintain a good credit rating.

4

Take care of collection accounts. Stop ignoring collection letters and calls. Create a plan to pay off these debts and negotiate new payment amounts with your creditors. Creditors are eager to work with debtors who put forth an effort to repay their debts.

5

Acquire new credit. Apply for a secured credit card with your bank or credit union after a bankruptcy to start repairing your poor credit history. Be prepared to pay a security deposit to qualify for this type of credit card. Secured credit cards are intended to help individuals with poor credit or no credit establish a solid credit history.