How to Fix My Credit Score for Free

Your credit score may be the single most important number in your life. Ranging from 350 to 850, your credit score is a measure of how dependable you are at managing your debts. Your credit report will be pulled whenever you apply for new debt and occasionally when you apply for rental property or a new job. Because of this, a low credit score can result in you being turned down for credit, loans, housing and even employment. Fortunately, you do not have to spend hundreds, or even thousands, of dollars to hire a credit repair company to fix your credit score. You can improve your bad credit for free on your own.

Instructions

1

Pull each credit bureau's copy of your credit report. Because different companies may report to different credit bureaus, it is vital that you review your credit reports from all three credit bureaus: Experian, Equifax and TransUnion. The Fair Credit Reporting Act (FCRA) gives you the right to request one free copy of each credit report every year.

2

Look for any accounts on your credit report that you do not recognize. If a lender reports incorrect information to the credit bureaus, that information can result in a debt ending up within the wrong credit file. If someone else's accounts appear on your credit report, they may be negatively affecting your score.

3

Look for any accounts that are obsolete. Negative information such as late payments on debts, collection accounts, foreclosures, repossessions and charge-offs can only appear on your credit report for seven years. If the dates on these accounts are incorrect or unavailable, this can result in the negative information appearing on your credit record for much longer than the FCRA allows.

4

Send a letter to each credit bureau whose report reflects obsolete or incorrect information. State in your letter that you are disputing the validity of the information and why. Include a copy of your credit report with the information underlined. When the credit bureaus receive your letters, they will conduct an investigation, correct any data deemed to be incorrect and mail you a new copy of your credit report that reflects the changes.

5

Check your credit report for any late payment information. Send each creditor whose report reflects late payment information a "goodwill letter." Goodwill letters explain why the payment was late and request that the creditor remove the late payment information from your credit report because you are a good customer. It is important to have late payment information removed, if possible, because late payments have a significant impact on your credit score.

6

Pay down your revolving debts, such as your credit card accounts. The amount you owe to your creditors accounts for 30 percent of your total score. By paying down your revolving debt, you increase the ratio of the amount you owe to the amount you are allowed to charge. This boosts your credit score.

7

Make all of your payments to your creditors on time. After you have had as much negative information removed from your credit report as possible, making timely payments to your creditors will ensure that your credit score stays positive and continues to improve over time.