The Easiest Way to Rebuild Credit

Rebuilding credit doesn't have to be a difficult task. In fact, many consumers have quickly and easily fixed their low credit rating by adjusting their credit habits. Minor changes in the way you deal with your credit history can add points to your FICO score. You can't immediately fix a bad history, but each month you'll notice a slight increase in your credit score. Before you know it, you'll have a higher score and you'll qualify for the best loan deals.

Instructions

1

Reduce or eliminate outstanding debts. Satisfying your debts by completely paying off the accounts can have a significant impact on your credit score. Rather than pay the minimum payment and carry a balance from month to month, use money from your savings account or tax refund to completely erase your balances.

2

Build a better relationship with your creditors. Skipped or late payments trigger harassing phone calls and threatening letters from creditors and, sometimes, creditors will raise your rate or lower your credit limit. Pay your statements on time to improve your payment record and rebuild your credit history.

3

Monitor your report. Sign up for a credit monitoring service or check your report at least once a year for mistakes that can bring down your score, such as unfamiliar accounts and inaccurate account information. Challenge errors on your report and ask creditors to remove mistakes.

4

Consider piggybacking. Rebuild credit with the help of another person. Your parent, spouse or someone else can call up their credit card company and include you as an authorized user on the account. Depending on how long they've had the credit card, this method can extend the length of your credit history, which adds points to your score. Your credit file will reflect their good payment history, which also helps lower your score.